SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 16890 / February 7, 2001

SECURITIES AND EXCHANGE COMMISSION V. ALAN M. STRICOFF, et al., Civil Action No. 97 Civ. 8183 (DC) (S.D.N.Y.)

FINAL JUDGMENTS ENTERED IN INSIDER TRADING CASE, RECEIVER APPOINTED TO ADMINISTER PLAN FOR THE DISTRIBUTION OF DISGORGED FUNDS

The Securities and Exchange Commission today announced that on August 21, 2000, Final Judgments of Permanent Injunction were entered against Alan M. Stricoff, Marvin Stone, Todd Stone and Daniel M. Porush in this insider trading case involving purchases of call options contracts for the securities of Caesars World Inc. prior to the December 19, 1994 public announcement of a tender offer for Caesars by ITT Corp. In addition, the Commission announced that Judge Chin has appointed David R. Kittay, of Kittay, Gold and Gershfeld, as receiver to administer a plan for the distribution of funds disgorged by the defendants.

Each defendant admitted the alleged violations and consented to the entry of the final judgments which enjoin them from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. In addition, the final judgment as to Todd Stone orders him to disgorge profits he and his tippees received and pay a civil penalty of $187,000. The final judgments as to Alan M. Stricoff, Marvin Stone and Daniel M. Porush waive payment of disgorgement and impose no civil monetary penalties in view of these defendants' sworn statements concerning their financial condition. (As a result of their plea agreements in related criminal cases, Alan M. Stricoff, Todd Stone and Marvin Stone are subject to restitution orders that require that they pay their illegal profits to the SEC over an extended period of time. The Plan of Distribution covers these payments as well as funds disgorged by Jeffrey Stricoff pursuant to his earlier settlement in which he admitted the alleged violations and consented to the entry of a final judgment permanently enjoining him from violating Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 and ordering him to pay $135,000 in disgorgement and penalties.) In addition, in follow-up administrative proceedings, Alan M. Stricoff and Porush consented to the entry of orders under Section 15(b) of the Exchange Act, barring them from association with any broker dealer. See Litigation Release No. 15551, November 7, 1994.

The disgorgement plan provides that the receiver distribute the disgorged funds on a pro rata basis to persons or entities, who on December 14 or December 16, 1994, were net sellers of the Caesars call options (strike prices of $50 and expiration dates of January 1995), and who complete necessary claims forms. Potential claimants who have not been contacted by the receiver may obtain claim forms by contacting counsel to the Receiver, Judy Siegel, Esq. Kittay & Gershfeld, P.C., 81 Main Street, New York, 10601, (914) 686-1900.

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