SECURITIES AND EXCHANGE COMMISSION

          LITIGATION RELEASE NO. 15916 / September 30, 1998

          SECURITIES AND EXCHANGE COMMISSION v. BING SUNG (United States
          District Court for the District of Massachusetts, C.A. No. 98-cv-
          11985 (WGY))

               The Commission announced today that it filed an action in
          Massachusetts District Court against Bing Sung, the former chief
          investment officer of RhumbLine Advisers, a Boston, Massachusetts
          investment adviser, charging that Sung engaged in unauthorized
          trading in two of RhumbLine's clients' accounts, the AT&T Corp.
          pension fund and the Massachusetts Pension Reserves Investment
          Trust.  The Commission's Complaint alleges that, as the losses
          mounted, Sung repeatedly misled AT&T about the performance of the
          account in an effort to conceal losses.  In 1996, the AT&T
          account sustained losses of $150 million, and the PRIT account
          sustained losses of $12 million, caused, in large part, by Sung's
          unauthorized trading.

               AT&T and PRIT both were clients who participated in an
          options trading program developed and managed by Sung.  Both
          clients had written risk-limiting guidelines which prohibited
          Sung from writing unhedged options (AT&T and PRIT) and in-the-
          money options (AT&T), and which employed various mechanisms to
          limit the number of options contracts he could write.  Beginning
          in early 1995, stock market increases caused the options trading
          program to sustain losses.  According to the Complaint, to make
          up losses, Sung began to deviate from the clients' written
          guidelines by writing unhedged and in-the-money options, and by
          writing drastically more options than permitted.  The Complaint
          alleges that starting in November 1995, Sung, using false
          information surreptitiously obtained from AT&T, applied for and
          obtained exemptions from the Chicago Board Options Exchange and
          the Philadelphia Stock Exchange which allowed him to trade well
          in excess of the limits in the guidelines.

               Between July and September of 1996, according to the
          Complaint, Sung increased the magnitude and riskiness of his
          trading.  The Complaint alleges that, in the AT&T account, he
          wrote unhedged and in-the-money options, as well as options
          against hundreds of millions of dollars of volatile stock
          indices, in violation of account guidelines.  In the PRIT
          account, he wrote more options than permitted.  Further, the
          Complaint alleges that, during the third quarter of 1996, Sung
          repeatedly misrepresented, concealed and failed to disclose these
          losses to AT&T.  On several occasions, he provided false
          performance reports to representatives of AT&T, which understated
          losses by millions of dollars.

               The Commission's Complaint alleges that Sung violated
          Section 17(a)  of the Securities Act of 1933 and Section 10(b) of
          the Securities Exchange Act of 1934 and Rule 10b-5 thereunder,
          and that he aided and abetted violations of Sections 206(1) and
          206(2) of the Investment Advisers Act of 1940.

               In a related matter, the Commission also announced that it
          instituted and simultaneously settled an administrative
          proceeding against RhumbLine and its chief executive officer,
          John D. Nelson, for failing to supervise Sung.  The Commission's
          Order found that Nelson and RhumbLine failed to detect and deter
          Sung's unauthorized trading, despite red flags which should have
          alerted them.  Further, RhumbLine had no controls or procedures
          for reviewing Sung's trading or his performance reports.
          RhumbLine has agreed to a censure, certain undertakings and a
          penalty of $50,000.  Nelson has agreed to a suspension and a
          penalty of $10,000.