-------------------- BEGINNING OF PAGE #1 ------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. LITIGATION RELEASE NO. 14774 / January 4, 1996 SECURITIES AND EXCHANGE COMMISSION V. ROBERT D. CARL, III, Case No. 1:96CV00016 (D.D.C.) (filed January 4, 1996) On January 4, 1996, the Commission filed a complaint in the United States District Court for the District of Columbia against Robert D. Carl, III, who is the chairman, chief executive officer, and president of Health Images, Inc. The Commission alleged that Carl violated Section 16(a) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rules 16a-2 and 16a-3 (and former Rule 16a-1) thereunder, by failing to timely file thirty-eight reports of transactions in his mother's brokerage accounts involving shares of Health Images stock in which he had a beneficial ownership interest. The Commission requested the court to impose a $10,000 civil penalty against Carl pursuant to Section 21(d)(3) of the Exchange Act. Without admitting or denying the allegations in the complaint, Carl consented to the entry of a final judgment imposing a $10,000 penalty. In a related matter, the Commission issued an administrative Order pursuant to Section 21C of the Exchange Act against Carl, finding that he violated Section 16(a) and the rules thereunder and requiring him to cease and desist from committing or causing any violation or future violation of those provisions. The Order also notes that Carl recently disgorged to Health Images approximately $92,400 in short-swing profits resulting from the trading in his mother's account, plus interest of approximately $52,600. Without admitting or denying the allegations in the Commission's Order, Carl consented to its entry.