ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Wednesday, January 10, 1996            TAG: 9601100138
SECTION: BUSINESS                 PAGE: B-5  EDITION: METRO 
DATELINE: WASHINGTON
SOURCE: Associated Press 


CIVIL CHARGES FILED AGAINST BOND TRADERS

Former Kidder Peabody & Co. bond trader Joseph Jett and two of his former supervisors were charged Tuesday, as expected, in a Securities and Exchange Commission civil case arising from Kidder's 1994 bond trading scandal.

Jett, who faces securities fraud and books and records violations, will have a chance to defend himself at a hearing before an SEC administrative law judge by March. The charges arise from Jett's dismissal in April 1994, when Kidder accused him of a plot to concoct $350 million in phony bond profits to inflate his bonus and a scheme to mask $100 million in losses.

The bond trading scandal contributed to Kidder's sale to Paine Webber Group for $670 million.

The SEC intends to seek to bar Jett from the securities industry, and have him surrender ill-gotten gains, said Richard Walker, the SEC's Northeast regional director. In addition, Jett could face civil fines that Walker said could total millions of dollars.

``The potential and the exposure is very large,'' Walker said. The SEC could seek fines of up to $100,000 for each alleged violation, which potentially involves thousands of trades over several years, he added

Jett's former bosses, Edward Cerullo and Melvin Mullin, were charged with failing to supervise the trader.


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