U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19444 / October 25, 2005

UNITED STATES OF AMERICA v. CHANCE M. VOUGHT and JOHN M. LUCARELLI, United States District Court for the District of Connecticut, 3:05-CR-268-JBA

SEC v. ROBERT R. ROSS, ET AL., 3:05-CV-01036-JBA (D. Conn.)

CRIMINAL CHARGES BROUGHT AGAINST TWO MORE IN SCHEME TO OBTAIN STOCK IN NEWALLIANCE BANCSHARES IPO

The Commission announced that on October 14, 2005, the United States Attorney's Office in New Haven, Connecticut, obtained an indictment against Chance M. Vought, age 56, of Quogue, New York, and John M. Lucarelli, age 35, of Greenwich, Connecticut, charging them with conspiracy, mail fraud, wire fraud and securities fraud in connection with the NewAlliance Bancshares, Inc. initial public offering (IPO). That indictment was under seal until October 24, 2005.

The 12-count indictment charges Vought and Lucarelli with conspiring to illegally obtain shares of NewAlliance stock. As alleged in the indictment, Vought, Lucarelli, and their co-conspirators were not eligible to obtain NewAlliance NAB stock at its $10 IPO price because they were not eligible account holders of New Haven Savings Bank (the predecessor of NewAlliance). However, Vought and Lucarelli are alleged to have participated in a scheme to purchase the stock at that $10 price by having individuals who were account holders purchase the stock for them. The Indictment alleges that, after purchasing the shares in the names of other people, the members of the conspiracy then sold the shares at a profit, which was shared among the defendants and the other members of their conspiracy.

On June 28, 2005, the Commission filed a complaint in the United States District Court for the District of Connecticut against Vought, Lucarelli, and others based upon the same fraudulent scheme that is the subject of the current indictment.

For further information, please see Litigation Release No. 19288 (June 28, 2005), and the Investor Alert the Commission issued on June 28, 2005. The Investor Alert is available at: www.sec.gov/investor/pubs/mutualconversion.htm.

http://www.sec.gov/litigation/litreleases/lr19444.htm