Robert P. Oliver, Walter W. White, Gerald W. White, Howard White and Daniel P. Patton

Litigation Release No. 16949/April 2, 2001

SECURITIES AND EXCHANGE COMMISSION v. ROBERT P. OLIVER, WALTER W. WHITE, GERALD W. WHITE, HOWARD WHITE and DANIEL P. PATTON, United States District Court for the Northern District of Texas, Dallas Division, Civil Action No. 3:01-CV-0649-D

The Commission today filed an insider trading action in the United States District Court for the Northern District of Texas, Dallas Division, involving trading in the securities of Enserch Corporation in advance of the April 15, 1996 announcement of its merger with Texas Utilities. The Complaint alleges that:

• Robert Oliver, an attorney, learned through his law firm of the merger in advance of the public announcement.

• Oliver enlisted his friend Daniel Patton to purchase Enserch securities and split the insider trading profits made in Patton's account.

• Oliver tipped his friend Walter White and a second individual not named in this Complaint, both of whom purchased Enserch securities prior to the merger announcement. Walter White, in turn, tipped his brother, Howard White, and father, Gerald White, each of whom purchased Enserch stock and options prior to the announcement. Finally, Gerald White caused additional Enserch trades to be made by certain other individuals.

• Each of the above individuals profited from their trades in Enserch as a result of the increase in the price of Enserch securities after the merger announcement.

Each of the defendants has consented, without admitting or denying the allegations of the Complaint, to the entry of an injunction prohibiting future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Each defendant has consented to entry of a judgment requiring disgorgement of trading profits and the payment of civil penalties pursuant to Section 21A of the Exchange Act as follows:

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