UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17391 / March 5, 2002

UNITED STATES SECURITIES AND EXCHANGE COMMISSION v. John S. Kramer, W. Jeffrey Kramer, Richard K. Pulling, Jr. and Keith E. C. Pulling, Defendants, and Nancy Kramer, Elizabeth Kramer Whitney, Lucien D. Yokana, Northeast Investment Properties and Vermont Capital Investors, Relief Defendants, Civil Action No. 02-690 (MLC), U.S. District Court, District of New Jersey.

The Commission announced today that the U.S. District Court for the District of New Jersey has entered final judgments imposing permanent injunctive and other relief against three defendants in a case alleging insider trading by John S. Kramer, W. Jeffrey Kramer, Richard K. Pulling, Jr. and Keith E. C. Pulling. The Court also entered a final judgment against one of the five relief defendants in the action.

The Court entered final judgments against defendants Jeffrey Kramer, Richard Pulling and Keith Pulling by consent on February 25, 2002, permanently enjoining these defendants from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-3 thereunder. The judgment against Jeffrey Kramer further orders that he pay disgorgement of $103,212, prejudgment interest of $11,656, and a civil penalty of $154,818. Similarly, the judgments against Richard and Keith Pulling order that they pay disgorgement of $52,387 and $30,450, prejudgment interest of $5,938 and $3,505, and civil penalties of $52,387 and $30,450, respectively. Jeffrey Kramer resides in Glastonbury, Connecticut, Richard Pulling lives in Skillman, New Jersey, and Keith Pulling is a resident of Oak Ridge, North Carolina.

The Court also entered a final judgment by consent against relief defendant Lucien D. Yokana on February 25, 2002. The judgment orders Yokana to disgorge $32,450 and pay prejudgment interest of $2,649. Yokana lives in Princeton, New Jersey.

In its complaint, the Commission alleged that John Kramer, Jeffrey Kramer, Richard Pulling and Keith Pulling violated Sections 10(b) and 14(e) of the Exchange Act and Rules 10b-5 and 14e-3 by purchasing the stock of Justin Industries, Inc. and Republic Group, Inc. while in possession of material nonpublic or "inside" information concerning potential business combinations involving these companies. It further alleged that, as a result of trading by defendant John Kramer, the relief defendants were in possession of illegal trading profits to which they had no legitimate claim.

SEC Complaint in this matter.