SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16427 / February 7, 2000

Securities and Exchange Commission v. Thomas Moncure, John Moncure, and Edward Remington, Civil Action No. 3:00CV64

SEC Settles Insider Trading Action With Three Defendants

On February 7, 2000, the SEC filed an action in federal district court in Richmond, Virginia, alleging that in October 1996 a former employee of CSX Corp., his father and a friend engaged in insider trading in the securities of Conrail, Inc., prior to the public announcement of its acquisition by CSX Corporation. The Commission's complaint alleges that:

• On October 9, 1996, CSX employee Thomas Moncure was told by his supervisors to design an internet Web Page announcing the impending acquisition of Conrail by CSX, which was material nonpublic information. Thomas Moncure then tipped his father, John Moncure, who is 80 years old, and his friend Edward Remington about the acquisition agreement.

• Thomas Moncure and Edward Remington purchased 1,000 and 500 shares of Conrail stock, respectively, and John Moncure purchased 10 short term Conrail option contracts.

• Both Edward Remington and John Moncure sold their Conrail securities shortly after the October 15, 1996 public announcement of the acquisition agreement. They realized profits from their insider trading of $8,125 and 12,812.50, respectively. Thomas Moncure did not immediately sell his Conrail stock. His imputed profit, based on the increase in the price of Conrail stock after the public announcement, was $16,200.

• Through the above conduct, the defendants violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-3 thereunder.

The three defendants consented, without admitting or denying the allegations of the complaint, to the issuance of an injunction restraining them from future violations of the provisions of the federal securities laws that each is alleged to have violated. Each defendant also consented to disgorge his trading profits, with prejudgment interest, in the amount of $19,730.39 (Thomas Moncure), $16,328.71 (John Moncure), and $9,717.59 (Edward Remington). Thomas Moncure and Edward Remington agreed to pay a civil penalty equal to their respective trading profits of $16,200 and $8,125.

The Commission acknowledges the assistance of the New York Stock Exchange in this matter.