To: Doug R who wrote (40241 ) 12/5/2001 8:46:58 PM From: Mr.G Read Replies (1) | Respond to of 79294 CANI has SEC troubles: WASHINGTON (Dow Jones)The Securities and Exchange Commission filed a civil lawsuit Tuesday alleging a Carreker Corp. (CANI) executive and his brother illegally traded on inside information about weak firstquarter earnings at the Dallas financial software company. Carreker senior vice president for investor relations George Matus, 33, and his brother, Peter Matus, a 27yearold stockbroker, made more than $200,000 trading on inside information, the SEC said in a suit filed in federal court in Texas. According to the SEC, George Matus helped draft a release stating that Carreker expected to earn 6 cents a share for the first quarter, well below the 13 cents a share forecast by industry analysts. Instead of keeping the information confidential, the SEC said Matus sought to profit from it and sent $50,000 to his brother, who bought put options that rise in value as the stock price falls. Carreker stock dropped when the earnings alert was issued on May 22, and was down 40% when Peter Matus, a broker at Terra Nova Trading, in Salt Lake City, sold the options, netting the brothers a $209,940 profit. "It's a very strong circumstantial case," said Harold Degenhardt, district administrator for the SEC's Fort Worth office. Carreker's policies strictly prohibit trading on inside information, and investor relations officials such as Matus "know better than most that they shouldn't trade" in such cases, he added. The SEC suit seeks to have the brothers return their allegedly illgotten gains with interest, pay a fine, and be subject to a permanent injunction on future securities violations. It also seeks to have George Matus barred from serving as an officer or director of a public company. Carreker general counsel Tod Mongan said George Matus was placed on temporary leave pending the outcome of an internal investigation into the SEC allegations. An outside law firm will conduct the investigation, and Mongan expects its findings within a week. Wayne Secore, the attorney for Peter Matus, didn't return phone calls, and the attorney for George Matus couldn't be reached for comment. By Judith Burns, Dow Jones Newswires; 2028626692; judith.burns@dowjones.com