FOR IMMEDIATE RELEASE 98-9 William R. McLucas, Director of the Division of Enforcement, To Leave the Commission After Two Decades of Service Washington D.C., January 22, 1998 -- William R. McLucas, Director of the Securities and Exchange Commission's Division of Enforcement, today announced that he intends to leave the Commission within the next several months. Mr. McLucas said that he has not reached any final decision about what he will do next. Mr. McLucas joined the Commission's Division of Enforcement in 1977 and has served as the Enforcement Director for the past eight years -- longer than any other Enforcement Director in Commission history. He was appointed to the position on December 26, 1989 by then Chairman Richard C. Breeden. During Mr. McLucas' tenure as Director, the Commission has brought more than 3,000 enforcement cases. Shortly after his appointment, the Commission settled its landmark case against Michael Milken who pled guilty in April 1990 to six felony counts and simultaneously agreed to pay $600 million in disgorgement and penalties to settle securities fraud charges. He subsequently supervised the Commission's task force directed at securities fraud in the bank and thrift industry and the investigation of Treasury auction abuses involving Paul Mozer, Salomon Brothers and others. Mr. McLucas also directed the Commission's investigation and settlement in October 1993 of fraud charges against Prudential Securities, following which a record $900 million was repaid to individual purchasers of limited partnership interests. Under Chairman Arthur Levitt, the Commission in 1993 reorganized its regional office structure and gave Mr. McLucas overall responsibility for regional office operations. More recently, Mr. McLucas supervised the Commission's investigation and settlement in 1996 of charges of trading abuses and lax oversight of the NASDAQ market by the NASD. Mr. McLucas has led the Commission's enforcement efforts to clean up the municipal securities industry and to crack down on retail sales abuses as more individual investors have entered the securities markets. That latter effort currently includes a concerted focus on civil and criminal prosecutions of fraud involving microcap securities. In announcing his plan to leave the Commission, Mr. McLucas said, "Being associated with the Securities and Exchange Commission has been the most rewarding personal and professional experience imaginable. In my view, I have had the best job in government and I have enjoyed every day of it. I am particularly grateful to Chairman Arthur Levitt and former Chairman Richard Breeden. They provided the wisdom and guidance essential to the Commission's law enforcement mission. Most of all, I thank the staff in the Division of Enforcement and in our Regional Offices for their dedication and hard work. They are among the most dedicated and talented public servants in government." SEC Chairman Arthur Levitt said, "Bill McLucas is a patriot who has given 22 years of dedicated service to our country. Never have I worked with an individual with more wisdom, leadership ability and integrity than Bill. His respect for the wise use of the power of government, his dedication to investor protection and his commitment to honest markets make him the personification of all that is great at the SEC. We will all miss his intelligent and common-sense approach to securities law enforcement. I will personally miss his sense of humor, his wit and the good judgment that have made him the key member of every important initiative undertaken by the Commission in my tenure. I have every confidence that he will continue to distinguish himself and that his future endeavors will be marked by the same professionalism and greatness he has demonstrated at the SEC." # # #