U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19706 / May 19, 2006

SEC v. Leslie A. Arouh, Civil Action No. 06- CV-80486 (SDFL May 16, 2006)

The Securities and Exchange Commission announced that on May 16, 2006, it filed a Complaint in the United States District Court for the Southern District of Florida against Leslie A. Arouh to compel his payment of $110,000 in civil penalties.

On September 3, 2002, the Commission issued an order instituting public proceedings pursuant to Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934 (Exchange Act) in the administrative proceeding In the Matter of Leslie A. Arouh, Administrative Proceeding File No. 3-10884. On December 20, 2004, the Commission issued an Order finding, among other things, that Arouh, a registered representative of First Union, violated the antifraud provisions of the federal securities laws in connection with an adjusted trading scheme involving investment-grade corporate bonds. Arouh was ordered to pay a civil penalty in the amount of $110,000. He has failed to pay the civil penalty.

The Complaint seeks to have an order issued pursuant to Section 21(e) of the Exchange Act, requiring Arouh to comply with the Commission's order by paying the $110,000 civil penalty, plus prejudgment interest.