Still in hiding…

March 31, 2005

Why is KeySpan Corp. (KSE) continuing to hide the fact that its CFO, Gerald Luterman, is under a formal investigation by the SEC and the US Attorney’s Office for the Southern District of New York over insider trading back in May 2001? Two other companies where Luterman serves on the board — Ikon Office Solutions (IKN) and Technology Solutions (TSCC) both include this information in their SEC filings. But Keyspan continues to downplay the issue — including in the proxy it filed yesterday — where it describes “inquiries from the U.S. Attorney’s Office and the SEC regarding trading in KeySpan stock by individual officers” as if the word inquiries, when used by the U.S. Attorney’s Office is an invitation to play golf and the fact that it involves the CFO is insignificant. Compare that to the way Ikon described the situation in January, when it filed its proxy: “Mr. Luterman, along with other members of KeySpan’s board has been named in a formal investigation by the SEC and the U.S. Attorney’s Office relating to his trading activities with respect to KeySpan common stock.” Technology Solutions used identical language in the proxy it filed last week, which makes Keyspan really seem as if it’s hiding something.

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