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Ex-Bankers Trust Exec Pleads Guilty

April 7, 1998

NEW YORK (AP) _ A former vice president for compliance at Bankers Trust Co. pleaded guilty Tuesday to passing confidential information about five companies to his brother and two others that they use to make profitable illegal trades.

Alan Stricoff, 36, of Plainview, pleaded guilty to conspiracy and securities fraud in U.S. District Court in Manhattan for his role in the insider trading scheme that included ITT Corp.’s 1994 bid for Caesars World Inc.

Stricoff tipped off his brother, Jeffrey Stricoff, and the others to sensitive information Bankers Trust had on the companies because of its role as their advisor. They then used the information to buy and sell the companies’ stocks for a profit.

Prosecutors said Stricoff and a coconspirator in the Bankers Trust compliance department who was not identified stole inside information about Dr. Pepper/Seven Up Co. Limited; LAC Minerals Limited, Caesars World Inc.; American Medical Holdings Inc. and Black and Decker Corp.

U.S. District Judge Kimba Wood scheduled sentencing for July 14. Stricoff faces a maximum of 10 years in prison and a fine of $1 million or twice the gain or loss from the securities fraud. Charges against Jeffrey Stricoff are still pending.

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