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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?

To: ralph keating who wrote (3988)	7/8/1998 2:44:00 PM
From: DD™	Read Replies (1) \| Respond to of 5736

Dreyfus puts Schonberg on leave, continues inquiry Reuters, Wednesday, July 08, 1998 at 14:08 NEW YORK, July 8 (Reuters) - Dreyfus Corp. said Wednesday that it placed portfolio manager Michael Schonberg on paid administrative leave in connection with an in-house inquiry into allegations that Schonberg managed two mutual funds in ways that benefited his personal investments. "Over the past few weeks, allegations have been made with regard to certain activities involving securities held in two different Dreyfus funds," Dreyfus spokeswoman Patrice Kozlowski said in an interview. "As a result, and to ensure the integrity of Dreyfus, we have been conducting a thorough review of such activities," she said. "The review has not yet been completed." Schonberg's management of the two funds received widespread attention in June when Manuel Asensio, a high-profile short-seller, alleged in a press release that Schonberg used the funds' money to benefit a personal investment in Chromatics Color Sciences International Inc. (NASDAQ:CCSI). Dreyfus, a unit of Mellon Bank Corp. (NYSE:MEL), said in a news release earlier Wednesday that Schonberg was placed on paid leave "to facilitate the (inquiry) process and to assure that Mr. Schonberg's time will continue to be devoted exclusively to this inquiry." Schonberg could not be reached for comment on Wednesday. Kozlowski cited company policy in declining to comment on a recent Wall Street Journal report that the U.S. Securities and Exchange Commission also is looking into the situation. An SEC spokesman declined to comment. On April 13, Dreyfus replaced Schonberg as primary portfolio manager for its Dreyfus Aggressive Growth and Premier Aggressive Growth funds, naming Paul LaRocco to that position. But Schonberg was to remain active in the funds' management, Dreyfus said at the time. The Aggressive Growth Fund lost 18 percent in the second quarter and is down 20.1 percent for the first half of the year. Premier Aggressive Growth lost 14.9 percent in the second quarter and was off 14.8 percent for the six-month period. Chromatics was up 9/32 at 5-7/16 in afternoon trading. Copyright 1998, Reuters News Service