FOR IMMEDIATE RELEASE 99-53 Henry Klehm III, Senior Associate Director of the Northeast Regional Office, To Leave the SEC After 10 Years of Service Washington, DC, May 19, 1999 -- Henry Klehm III, Senior Associate Regional Director for Enforcement of the Securities and Exchange Commission's Northeast Regional Office, announced today that he will leave the Commission in June to become the Chief Regulatory Officer for the Prudential Insurance Company of America. Mr. Klehm will assume the newly created position in the legal department of Prudential in Newark, New Jersey, where he will coordinate company-wide interaction with regulators. SEC Chairman Arthur Levitt said, "The ability of the SEC to enforce the securities laws and protect investors derives from the dedicated efforts of people like Henry Klehm. Wall Street is fairer, better, and safer because of Henry's work. Henry's guidance over the years has been invaluable to me and to the Commission. I have enjoyed his friendship and I will miss his good spirit. On behalf of the Commission, I thank him for his service and wish him well in his new position." SEC Enforcement Division Director Richard H. Walker said, "Henry's departure is a substantial loss to the Commission and to me personally. For the past decade, Henry has distinguished himself through his legal intellect and tenacious desire to protect investors. Henry's sage counsel has been of significant benefit to the SEC's enforcement program and his wit has provided needed relief. Henry's departure leaves a void that we can only hope to fill and I will miss him greatly." Mr. Klehm, 40, became Senior Associate Regional Director in February 1996, after serving in various capacities in the Enforcement Division of the Northeast Office since 1989. As a senior enforcement staff member, Mr. Klehm has been responsible for a significant number of major enforcement initiatives, including: * The SEC's parallel investigations and enforcement actions related to ThorCon, the undercover investigation by the Federal Bureau of Investigation and the United States Attorney for the Southern District of New York, that resulted in the arrest of more than 46 stock promoters, brokers, and company officials for illegal bribes in the microcap stock markets. * The SEC's investigation and enforcement actions arising out of illegal "on-floor" trading practices at the New York Stock Exchange. * Numerous "soft-dollar" cases against investment advisers for receiving improper expense reimbursements in exchange for directing client transactions to broker- dealers. In announcing his plans to leave the Commission, Mr. Klehm said, "My ten years at the SEC have been interesting and challenging. The qualities of my colleagues at the SEC, their knowledge, energy, enthusiasm and commitment to investor protection, have made these years truly outstanding and memorable in every respect. I look forward to a similar experience with Prudential as it faces the competitive challenges in the financial services industry and continues to enhance its reputation for leadership and integrity in the industry." Prior to joining the SEC, Mr. Klehm was a judicial law clerk for a federal trial court judge, the Honorable Daniel H. Huyett 3rd (dec.) of the Eastern District of Pennsylvania. Before attending law school, Mr. Klehm was employed in various capacities with the Fidelity Mutual Life Insurance Company in Philadelphia, Pennsylvania. Mr. Klehm has a B.S. with honors in Business Administration from Villanova University and a J.D. with honors from the University of Pennsylvania. # # #