UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 16044 / January 25, 1999 SEC v. ONE OR MORE UNKNOWN PURCHASERS OF CALL OPTIONS AND COMMON STOCK OF USCS INTERNATIONAL, INC., No. 98-Civ-6327 (S.D.N.Y.) (September 8, 1998) SEC ANNOUNCES SETTLEMENTS WITH PREVIOUSLY “UNKNOWN„ PURCHASERS The Securities and Exchange Commission announced that on January 25, 1999, Final Judgments were entered by the United States District Court for the Southern District of New York which reflect settlements reached with the two previously “unknown„ defendants in this insider trading case. The Commission’s Complaint, filed on September 8, 1998, alleged that the then “unknown purchasers„ had engaged in illegal insider trading by secretly purchasing call options and common stock of USCS International, Inc. through a Swiss account just hours before it was announced that DST Systems, Inc. had agreed to acquire USCS in a merger. On September 8, 1998, the Court froze the proceeds of the defendants’ trading, approximately $2 million, which were about to be transferred out of the country. Nine days later, after the defendants failed to comply with a Court Order directing them to identify themselves, the Court entered a preliminary injunction, continuing the asset freeze indefinitely. Thereafter, defendants identified themselves as Igor Okhman of Studio City, California and Frank Mashevich of Vancouver, British Columbia. Shortly after the Commission began limited discovery, the defendants offered to settle the action without admitting or denying the substantive allegations of the Complaint. Okhman consented to the entry of a Final Judgment which would (1) enjoin him from violating Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, (2) order that he disgorge alleged illegal trading profits of $190,454; and (3) order that he pay a civil penalty of $190,454. Mashevich submitted an offer of settlement in which he consents to the entry of a Final Judgment which would (1) enjoin him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; (2) order that he disgorge alleged illegal trading profits of $164,837 ; and (3) order that he pay a civil penalty of $164,837. The settlements provide that the disgorged funds be deposited with the Court for distribution pursuant to a plan to be submitted by the SEC for the Court’s approval. The Commission’s staff is continuing its investigation.