The Securities and Exchange Commission announced yesterday ithas simultaneously sued and reached settlement with a formerdirector of Portland General Corp. and his friend for insidertrading in connection with the July 1996 merger of the Oregonelectricity company and Enron Corp.

The SEC said the two men, former Portland General Director PeterJ. Brix and his friend, Ellison C. Morgan, had agreed to pay nearly$340,000 for illegal profits, interest, and civil penalties tosettle the commission’s charges, which were filed in the U.S.District Court for the Southern District of New York.

The SEC said Brix learned at a June 18, 1996, Portland Generalboard meeting that the company agreed to merge with Enron and thentold Morgan about the deal on June 21 prior to public announcement.Morgan then bought 20,000 shares of Portland General stock at anaverage price of $29.684/share for a total cost of about $594,000.When the merger agreement was announced June 22, the company’sstock climbed $6.375 (23%). Morgan sold his shares the day afterthe merger announcement, making a profit of $109,291.73, the SECsaid. The commission was notified of the trades by the New YorkStock Exchange.

Morgan and Brix neither admitted nor denied the allegations inthe SEC’s complaint. But Morgan agreed to return his profits andpay a civil penalty of $229,808.02. Brix agreed to pay a fine of$109,291.73, equal to Morgan’s profits. Both men consented topermanent injunctions that will prohibit each from committing fraudwhen buying or selling securities.

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