Smith Barney to Pay $1 Million in Espy Case

Travelers Group Inc.’s Smith Barney Inc. agreed to pay $1.05 million to settle civil charges that the company gave a $2,200 Super Bowl ticket to former Agriculture Secretary Mike Espy. Independent counsel Donald Smaltz charged that Smith Barney violated federal tort and conflict-of-interest laws. Smith Barney allegedly gave Espy the ticket, bought from a scalper, in 1994 when the investment company was trying to persuade the former secretary to intervene on behalf of a Smith Barney client, Oglethorpe Power Corp., in a dispute with the Treasury Department. Smaltz was appointed in 1994 to investigate charges that Espy accepted gifts from companies he regulated at the Agriculture Department. Espy has denied any wrongdoing and hasn’t been charged. Last week, Smaltz formally notified Espy that he could face criminal charges. Shares of New York-based Travelers Group rose $1.75 to close at $71.38 on the New York Stock Exchange.