OTHER NEWS - Dec. 2, 1995

Tustin Firm Says Broker’s Illicit Trades Led to Loss: In a case that could further rock the already shaky corporate money management world, PairGain Technologies Inc. said the broker managing one of its investment accounts has lost $15.9 million through unauthorized trading activity. Charles Strauch, chief executive of the fast-growing telecommunications company, stressed that the loss came from investment funds rather than operating cash and will not jeopardize the company or result in layoffs or other belt-tightening actions. PairGain executives declined to discuss the kind of unauthorized investments that led to the loss, but they said the broker handling the trades violated written policy limiting investments to U.S. Treasury notes. Strauch refused to identify the money management firm or the broker or brokers involved, citing an ongoing internal investigation. PairGain said it has notified Nasdaq market officials.