SECURITIES AND EXCHANGE COMMISSION Washington, D.C. Litigation Release No. 15754 / May 21, 1998 SECURITIES AND EXCHANGE COMMISSION v. WILLIAM BENJAMIN LOCKWOOD, Civil Action No. 98-WY-1150 (D. Colo. May 21, 1998). The Securities and Exchange Commission today announced the filing of a civil injunctive action in the United States District Court for the District of Colorado against William Benjamin Lockwood, alleging that he engaged in insider trading in the common stock of BI, Incorporated ( BI ). The Commission s Complaint alleges that, on September 11, 1996, the defendant exercised options for 1,500 shares of the common stock of BI and sold the shares thereby obtained for $10 7/16 per share. According to the Complaint, at the time of this transaction, Lockwood was in possession of material nonpublic information indicating that BI would not meet consensus estimates for earnings for the quarter. The following day, BI Incorporated issued a press release disclosing the anticipated revenue shortfall. The price of BI common stock fell that day to close at $7 per share. The Commission s Complaint alleges that by selling his BI shares at $10 7/16 per share, the defendant avoided losses of $5,468.00. Simultaneous with the filing of the Complaint on May 21, 1998, the defendant consented, without admitting or denying the allegations in the Complaint, to the entry of a Final Judgment permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and ordering that he disgorge profits from his transactions in the securities of BI of $5,468.00, plus prejudgment interest of $508.00, pay a one-time civil penalty of $5,468.00, and pay postjudgment interest. ======END OF PAGE 1======