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EDMISTEN GETS SETTLEMENT FROM SALOMON BROTHERS TO HELP FUND NATIONAL AWARENESS PROGRAM

 /ADVANCE/ RALEIGH, N.C., Jan. 6 /PRNewswire/ -- North Carolina will receive $100,000 from the Salomon Brothers securities firm as part of a $4 million, 40-state settlement fostered by Secretary of State Rufus L. Edmisten.
 Half of North Carolina's settlement will be used to further the state's Investor Awareness Program, designed to educate citizens to the pitfalls if investment fraud. The other $50,000 will constitute the state's contribution to start up a national investor education program, modeled after North Carolina's.
 "North Carolina's Investor Awareness program has been a useful part of our battle against fraud," Secretary Edmisten said. "North Carolinians should find it gratifying that other states are following suit."
 In all, at least 40 states are expected to settle with Salomon Brothers to end the current round of negotiations. Each of the states will kick $50,000 of its $100,000 from Salomon into the national "Investor Protection Trust Fund."
 Salomon is paying the money for its employees' part in a scheme to defraud the U.S. Treasury market.
 Secretary Edmisten led a probe of allegations against Salomon in his role as North Carolina's top securities administrator and head of an investigative committee of the National Association of Secretaries of State. He prompted other states' administrators to check Salomon's workings in their respective jurisdictions.
 "Contrary to what many people said at the start of our negotiations, this has been a state issue and is a state issue now," Edmisten said. "Investors should realize we are doing everything we can at the state level to look out after their interests."
 After Edmisten raised the issue with other administrators last year, a five-member panel took over active negotiations with Salomon. Both sides reached tentative agreement on the $100,000-per-state figure and then sought approval from the 40 states affected.
 "The negotiation team deserves a lot of credit for the final outcome," Edmisten said. "They had to keep a multitude of people involved in what was a long and tedious process."
 Creation of the national fund should prove beneficial to all involved, Edmisten said. Like North Carolina's program, the national trust fund will be used to promote investor awareness of potential fraud through a variety of means.
 Some possible projects to be considered include:
 -- A toll-free "800" number to accept investor complaints and inquiries;
 -- Expansion of existing education programs to new audiences, e.g., the disabled and/or non-English-speaking groups;
 --Funding of multi-state investigations that are currently beyond the financial reach of state regulators.
 -0- 1/6/93/0800
 /CONTACT: Gene Cella, 919-733-3924/


CO: North Carolina Department of the Secretary of State;
 Salomon Brothers ST: North Carolina IN: SU:


SB-MM -- CH009 -- 1960 01/05/93 18:20 EST
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Date:Jan 5, 1993
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