SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 16647 \ August 9, 2000

SEC RECOVERS $314,357 IN PENALTIES AND DISGORGEMENT FROM THREE HEALTH INSURANCE EXECUTIVES FOR INSIDER TRADING IN EMPLOYEE BENEFIT PLANS, INC.

Securities and Exchange Commission v. Thomas A. Toussaint, Michael C. Slagle and Erwin K. Geigle, U.S.D.C. for the District of Minnesota, Civil Action No. 98-CV-2406 DSD/JMM

The SEC today announced the settlement of a complaint for insider trading in the securities of Employee Benefit Plans, Inc. ("EBP") against Thomas A. Toussaint of Eden Prairie, Minnesota, Michael C. Slagle of Fairhope, Alabama and Erwin K. Geigle of Bismarck, North Dakota. Under the settlement, the defendants consent to pay $314,357 in disgorgement, interest and penalties.

EBP was an underwriter and administrator of health insurance plans, headquartered in Minneapolis, Minnesota. The SEC had filed a complaint in this matter in November 1998. The complaint alleged that in the Spring of 1995, Thomas Toussaint, who was in charge of EBP's underwriting department, tipped Michael Slagle, a friend and business associate, about pending merger negotiations between EBP and First Financial Management Corporation. Slagle then purchased EBP securities and in turn tipped Erwin Geigle, a friend and business associate, of the pending negotiations. Geigle also purchased EBP securities. In addition, Slagle recommended EBP to one other friend and business associate who purchased EBP, and Geigle recommended EBP to seven other friends and business associates who purchased EBP. The tipping and trading violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Toussaint, Slagle and Geigle consented, without admitting or denying the allegations of the complaint, to the entry of final judgments which will permanently enjoin them from violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Pending approval by the Court, the defendants also consented to pay $133,294 in disgorgement and to pay prejudgment interest on the disgorgement in the amount of $71,372.61. In addition, Toussaint consented to pay a civil penalty of $41,230 equal to the profits of his tippee Slagle, Slagle consented to pay a civil penalty of $41,230 equal to his profits and Geigle consented to pay a civil penalty of $27,231 equal to his profits. The total payments will be $314,357.61.

http://www.sec.gov/litigation/litreleases/lr16647.htm