U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 15676 / March 18, 1998 Securities and Exchange Commission v. Roger D. Wyatt and David L. Holewinski, Civil Action No. 96-5399 TJH (Mcx) (C.D. Cal.) The Securities and Exchange Commission announced that on March 12, 1998, the Honorable Terry J. Hatter, Jr., United States District Judge for the Central District of California, entered a Final Consent Judgment of Permanent Injunction, Disgorgement, and Civil Penalty against David L. Holewinski of Yardley, PA for insider trading in the securities of Chantal Pharmaceutical Corporation, a Los Angeles based company. According to the Commission's Complaint, filed on August 5, 1996, Holewinski sold all of his and his wife's Chantal stock prior to a public announcement by Chantal, on February 25, 1993, that The Upjohn Company had terminated a licensing agreement with Chantal because tests showed that Chantal's Cyoctol compound was not an effective anti-acne drug. The Complaint further alleged that Chantal's joint venture with Upjohn was its sole source of income at the time. The Complaint also alleged that between mid-January 1993 and February 25, 1993, Roger D. Wyatt of Houston, while acting as a consultant to Chantal, became aware of confidential information concerning Upjohn's testing of Cyoctol and conveyed this information to Holewinski, an individual with whom Wyatt maintained a close, personal and business relationship. Holewinski, in turn, directed his broker to sell all of his and his wife's Chantal shares immediately following a telephone conversation with Wyatt on February 25, 1993. Holewinski's trades occurred just before the public announcement by Chantal. Holewinski, without admitting or denying the allegations in the Complaint, consented to a Judgment that permanently enjoined him from future violations of the antifraud provisions of the federal securities laws (specifically, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder), and ordered him to disgorge losses avoided in the amount of $28,162, plus prejudgment interest in the amount of $4,921.41. The Consent Judgement also ordered Holewinski to pay a civil penalty in the amount of $28,162. On November 24, 1997, a judgment in the amount of $209,205.21 was entered against Wyatt as a result of his own insider trading in Chantal stock and his role in tipping Holewinski. For additional information, See Litigation Release Nos. 15002 (August 6, 1996) and 15586 (December 9, 1997). ======END OF PAGE 1======