UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          LITIGATION RELEASE NO. 16150 / May 18, 1999

          SECURITIES  AND  EXCHANGE  COMMISSION v. JOHN F. WALSH,
          III
          Action No. 3:CV-97-0001 (M.D.  Pa.)  (filed  January 2,
          1997)

               On May 11, 1999, the United States District Court
          for the Middle District of Pennsylvania entered a final
          judgment by consent against John F. Walsh, III, a
          broker in the Clarks Summit, Pennsylvania office of
          Rutherford, Brown & Catherwood, Inc., for insider
          trading in the securities of First Eastern Corporation.
          Without admitting or denying the allegations in the
          Commission’s complaint, Walsh consented to the entry of
          a permanent injunction and payment of a total of
          $54,666 in disgorgement of trading profits, penalties
          and prejudgment interest.

               The Commission’s complaint, which was filed on
          January 2, 1997, alleged that Harry C. Morgan, a
          director of First Eastern, tipped John Martines, a
          business acquaintance, about the upcoming acquisition
          at a dinner at the Scranton Country Club on Friday,
          July 23, 1993.  The complaint alleged that, at the
          dinner, Martines discussed with Morgan rumors regarding
          the possible purchase of first Eastern by another bank,
          and asked Morgan to identify the purchaser.  Morgan
          allegedly responded, "Bet on the boys from Pittsburgh,"
          referring to Pittsburgh-based PNC.  The Commission
          alleged that this comment confirmed that First Eastern
          was to be acquired and identified the purchaser.  This
          information was non-public and material to investors,
          according to the complaint.

               The complaint further alleged that on Monday, July
          26, 1993, Martines purchased First Eastern stock
          through a broker at the Clarks Summit office of
          Rutherford, Brown & Catherwood, and told that broker
          about Morgan’s comments.  The broker was Andrew Paul
          Tomasko.  The same day, according to the complaint,
          that broker told Walsh, his supervisor, about Martines’
          purchase and the comments Morgan made to Martines at
          the country club.  Following that conversation, Walsh
          bought First Eastern stock for his wife and six of his
          customers.  The next day, when the acquisition was
          announced, Walsh’s customers realized total overnight
          profits of $21,228.

               Walsh consented to entry of a Final Judgment,
          which permanently enjoins him from future violations of
          Section 10(b) of the Securities Exchange Act of 1934,
          and Rule 10b-5 thereunder, and orders him to pay
          $21,228 in disgorgement, $12,210 in prejudgment
          interest, and a $21,228 penalty.  In a separate action,
          Walsh consented to the entry of an administrative order
          suspending him from association with a broker or dealer
          for six months.

               Simultaneous with the filing of the Commission’s
          complaint on January 2, 1997, co-defendants Morgan and
          Martines consented to the entry of final judgments
          permanently enjoining them from violating Section 10(b)
          of the Exchange Act and Rule 10b-5 thereunder.  Morgan
          and Martines also consented to pay disgorgement,
          penalties and interest of  $81,690 and $23,517,
          respectively (Lit. Rel. No. 15203).   On September 10,
          1998, Tomasko consented to the entry of an order
          requiring him to cease and desist from causing or
          aiding and abetting violations of Section 10(b) of the
          Exchange Act and Rule 10b-5 thereunder, suspending him
          from association with any broker or dealer for forty-
          five days, and ordering him to pay a $10,000 penalty
          (Admin. Proc. Rel. No. 34-40425).