FOR IMMEDIATE RELEASE 99-1 SEC Seeks Sanctions Against Nine Transfer Agents for Failing to Make Required Year 2000 Disclosure Washington, DC, January 7, 1999 -- The Securities and Exchange Commission today charged nine transfer agents for failing to report on their Year 2000 preparedness as required. Five of the firms settled the charges and four are contesting them. The Commission's rules required firms to file Form TA-Y2K with the Commission by August 31, 1998, but these nine transfer agents failed to file all or part of this Form by December 8, 1998. Three of the nine transfer agents agreed to cease and desist from further violations, be censured, and pay a $7,500 civil penalty. They are: CSJ, LLC, Houston, TX; Davidson Trust Co., Great Falls, MT; and Ivy MacKenzie Services Corp., Boca Raton, FL. Two transfer agents agreed to cease and desist from further violations, be censured, but not pay a civil monetary penalty based on inability to pay. The two are Corporate Planners, Inc., Fountain Hills, AZ and National Stock Transfer and Accounting, Inc., Palm Beach Gardens, FL. The remaining four transfer agents are contesting the charges. They are: Alpha Tech Stock Transfer Trust, Draper, UT; Greenfield Fund Inc., Old Greenwich, CT; Manor Investment Funds, Inc., West Chester, PA; and United Stock Transfer, Inc., Englewood, CO. SEC Commissioner Laura S. Unger, who is spearheading the Commission's Year 2000 efforts, said, "As the new millennium approaches, these cases amplify our message that we will not tolerate anything less than full disclosure from the securities industry as to its Year 2000 readiness. Investors and other market participants have the right to know if those they do business with have any Y2K-related computer problems and, if so, whether those problems are being ironed out." Failure of transfer agents to anticipate and cure Year 2000 problems could seriously disrupt corporate communications with shareholders affecting payment of dividends, exercise of options, and notification of important corporate developments, including those requiring shareholder action. Transfer agents must disclose on Form TA-Y2K the steps they have taken to address Year 2000 problems, including contingency plans in case they are not ready in time. The Commission will use Form TA-Y2K to obtain a more complete picture of the securities industry's overall Year 2000 preparations and to identify firm-specific and industry-wide problems. --more-- Transfer Agent News Release January 7, 1999 Page 2 Transfer agents must file an updated Form TA-Y2K by April 30, 1999. Issuers, their representatives, and investors are encouraged to call the SEC's public reference room at (202) 942-8090 to assess the Year 2000 readiness of transfer agents by reviewing their Form TA-Y2K. For further information regarding the Commission's actions, contact Daniel F. Shea, Regional Director, Central Regional Office, or Katherine S. Addleman, Assistant Regional Director, Central Regional Office at (303) 844- 1000. # # #