OTHER NEWS - April 19, 1996

Ex-Gruntal Exec Pleads Not Guilty to Embezzlement: Edward Bao, former executive vice president of Gruntal & Co.’s operations and administration, was indicted on charges that he conspired with three other workers to embezzle $14 million from the brokerage’s customer accounts. He remained free on a $50,000 bond after a hearing before U.S. Magistrate Andrew Peck in New York. Bao faces charges of conspiracy, mail fraud and falsification of Gruntal’s books and records. If convicted, he could face up to five years in prison and fines. Last week, Gruntal settled SEC and other regulatory charges that Bao and other former managers defrauded investors from 1984 to 1994. Gruntal agreed to pay a $6.2-million fine and to set aside $5.5 million to pay future claims.