November 10, 2004

PRESS RELEASE

FORMER PAINE WEBBER STOCKBROKER
CHARGED WITH SECURITIES FRAUD AND TAX EVASION

Boston, MA... A Lake Worth, Florida man formerly a resident of Sharon, Massachusetts was charged today in federal court with securities fraud and tax evasion.

United States Attorney Michael J. Sullivan, Joseph A. Galasso, Special Agent in Charge of the IRS in New England, and Kenneth Kaiser, Special Agent in Charge of the FBI in New England announced today that SCOTT F. MCCREADIE ("MCCREADIE"), age 34, of Lake Worth, Florida, was charged in a three count Information with securities fraud and tax evasion.

The Information alleges that from April 2000 through June 2002, MCCREADIE, while employed as a financial advisor at Paine Webber in Wellesley, Massachusetts and Palm Beach, Florida engaged in a scheme to defraud his wife’s family. MCCREADIE acted as the financial advisor for a number of Paine Webber brokerage accounts owned by members of his wife’s family. Although MCCREADIE engaged in a variety of fraudulent and deceptive acts, his scheme essentially consisted of transferring funds from the family’s accounts into accounts MCCREADIE owned. MCCREADIE accomplished the transfers by using forged letters of authorization. The letters would direct Paine Webber to transfer funds from the family accounts either directly into a Paine Webber account owned by MCCREADIE or into one of the family’s "trust" accounts over which MCCREADIE’s wife had signatory authority. For the funds transferred into the "trust" account, MCCREADIE would then withdraw the funds by forging his wife’s name on checks written on the account. In total, MCCREADIE misappropriated approximately $731,000 from the family accounts. MCCREADIE spent the funds on personal expenses and stock trades.

MCCREADIE also failed to report as income on either his 2000 or 2001 tax returns the funds he had misappropriated.

If convicted on the securities fraud charges, MCCREADIE faces up to 10 years imprisonment, to be followed by 3 years of supervised release, and a $1,000,000 fine. If convicted on the tax evasion charges, MCCREADIE faces up to 5 years imprisonment, followed by 3 years supervised release and a $100,000 fine on each count.

The case was investigated by the IRS and FBI. The U.S. Attorney would especially like to thank Secretary of the Commonwealth William F. Galvin’s Securities Division and the Boston District Office of the Securities Exchange Commission for their assistance. It is being prosecuted by Assistant U.S. Attorney Jack W. Pirozzolo of Sullivan’s Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139