The Honolulu Advertiser from Honolulu, Hawaii • 18

A-18 Thursday, May 19,1988 The Honolulu Advertiser 'I mi in mnffrnmn Money Hutton money-laundering case may widen KHBC union vote inconclusive Anociattd Prett NEW YORK New disclosures by the Securities and Exchange Commission could widen the scope of money-laundering charges against E.F. Hutton a major brokerage firm that was absorbed by Shearson Lehman Hutton Inc. The SEC disclosed in documents made public Tuesday that Shearson has uncovered possible instances of money laundering at several New York branch offices of Hutton. Shearson, a giant investment firm which acquired Hutton in December 1987, pleaded guilty on Hutton's behalf Monday to three criminal counts of money laundering and conspiracy at Hutton's branch in Providence, R.I. Shearson was fined $1.01 million for the offenses, which occurred between 1982 and 1984.

Also Tuesday, the SEC granted Shearson a temporary exemption from securities laws that would bar it from acting as an investment adviser in Providence because of its guilty plea. The SEC documents, based on information supplied to the agency early this year by Shearson, said an internal investigation conducted by Shearson turned up possible cases of money laundering at several Hutton retail branches in the New York City area. i. No winner has been named in the KHBC-TV union election because 17 of 37 ballots have been challenged, according to the National Labor Relations Board. Ballots were challenged both by the Hilo station and by the International Brotherhood of Electrical Workers, Local 1260.

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