SECURITIES AND EXCHANGE COMMISSION Washington D.C. LITIGATION RELEASE NO. 15476 / September 4, 1997 SECURITIES AND EXCHANGE COMMISSION V. HUGH THRASHER, JOHN H. ANDERSON, EZRA CHAMMAH, STANLEY ELBAUM, SCOTT FORBES, GUILLERMO GOMEZ a/k/a WILLIAM GOMEZ, STEPHEN V.R. GOODHUE, JR., IRA GORMAN, GORMAN COMMODITIES & SECURITIES, INC., JONATHAN S. HIRSH, RONALD KUZNETSKY, DARRELL SANDY MARSH, JACK P. MARSH, MICHAEL R. NEWMAN, ROGER K. ODWAK, ANGELO PETROTTO, LEE ROSENBLATT, ROBERT SACKS, JEFFREY A. SANKER, DAVID SCHAEN, LEONARD SCHAEN, JULIAN SCHOR, GREGG R. SHAWZIN, AND MARK R. SHAWZIN, 92 Civ. 6987 (JFK) (S.D.N.Y.) The Securities and Exchange Commission ("Commission") announced that the United States District Court for the Southern District of New York recently entered a judgment against defendant William Gomez ("Gomez"). According to the Commission's amended complaint filed on March 4, 1993, the defendant engaged in insider trading by purchasing the securities of Motel 6, L.P. ("Motel 6") while in possession of material, nonpublic information concerning a planned tender offer for the company. On August 5, 1997, the Court entered Final Consent Judgments of Permanent Injunction and Other Relief As To Guillermo Gomez a/k/a William Gomez. Without admitting or denying the allegations of the amended complaint, Gomez consented to a permanent injunction from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-3 thereunder. Gomez agreed to pay $131,104 in disgorgement of profits and prejudgment interest thereon, but in light of a demonstrated inability to pay based upon his sworn representations in a statement of financial condition, the Commission agreed that all of the payment would be waived and Gomez would not pay a civil penalty pursuant to the Insider Trading and Securities Fraud Enforcement Act of 1988. The Commission's amended complaint alleges that between late May 1990 and until and including July 12, 1990, Hugh Thrasher, an insider at Motel 6, for his personal benefit and in breach of his duty to Motel 6 and its shareholders, communicated material, nonpublic information concerning negotiations for the acquisition of Motel 6 to his close personal friend, Carl Harris ("Harris"). The Commission alleges that Harris thereafter tipped numerous people, including Gomez. ======END OF PAGE 1======