SECURITIES AND EXCHANGE COMMISSION
                                   WASHINGTON, D.C.

     Litigation Release No. 15559 / November 13, 1997

     SECURITIES AND EXCHANGE COMMISSION v. CHARLES BRUMFIELD, JOSEPH BRUMFIELD,
     ROBERT ALLEN, WILLIAM MYLETT, JOSEPH PENNA, JOSEPH CUSIMANO, ALFRED VOLPE,
     JAMES GALANTE, THOMAS ALGER, JOHN O'BRIEN, LAWRENCE FRIEDMAN, ROBERT
     FLANAGAN, THOMAS FLANAGAN, SHARON SEIDEN, WARREN SMITH, JOHN LYNCH, AND
     ALBERT BRODY, United States District Court for the Southern District of New
     York, Civ. Action No. 95-9283 (JES).

          On November 6, 1997, the United States District Court for the Southern
     District of New York granted the Commission s motion for summary judgment
     against two brothers, Robert and Thomas Flanagan, finding that they had
     engaged in insider trading in the securities of three AT&T acquisition
     targets.  The Court permanently enjoined Robert Flanagan from future
     violations of Sections 10(b) and 14(e) of the Securities Exchange Act of
     1934, and ordered him to disgorge $961,887.66 in trading profits, pay
     prejudgment interest of $722,644.23, and pay a civil penalty of
     $2,483,189.67.  The Court also entered a permanent injunction against
     Thomas Flanagan based on the same statutory provisions and ordered him to
     disgorge $379,524.98 in trading profits, pay prejudgment interest of
     $290,034.10, and pay a civil penalty of $1,138,574.94.

          In its summary judgment motion, the Commission demonstrated that in
     1990 and 1991, Charles Brumfield, at the time an AT&T labor relations
     executive, learned about AT&T's secret plans to acquire NCR Corporation,
     Digital Microwave Corporation, and Teradata Corporation.  Brumfield then
     leaked this information to a colleague at AT&T, Thomas Alger.  Alger, in
     turn, tipped Robert Flanagan, who arranged for others (including his
     brother Thomas) to buy securities in the acquisition targets both for him
     and for themselves.  Some of the profits from those trades were then paid
     to Robert Flanagan, who kicked back a portion to Brumfield and Alger as
     payment for the information.

          Both Robert and Thomas Flanagan were previously convicted of related
     criminal charges.  In September 1995, a jury found Robert Flanagan guilty
     of securities fraud and conspiracy to commit securities fraud, wire fraud,
     and obstruction of agency proceedings.  He was sentenced to two years
     imprisonment, three years supervised release, and a $5,000 fine.  His
     conviction was affirmed on appeal.  Thomas Flanagan pled guilty in August
     1995 to conspiracy to commit securities fraud, wire fraud, and obstruction
     of agency proceedings, and was sentenced to four months imprisonment, four
     months home detention, and three years supervised release.

          The Commission has obtained judgments against or settled with twelve
     of the defendants in its civil action.  Five defendants remain:  Robert
     Allen, John Lynch, Joseph Penna, Sharon Seiden, and Warren Smith.  Trial is
     scheduled for June 29, 1998.

     Related Releases:   L.R. 14706, L.R. 14779, L.R. 14956, L.R. 15180, 

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               L.R. 15221, L.R. 15227, L.R. 15285, L.R. 15426




















































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