The SEC issued an order instituting administrative proceedings against Joseph A. Frohna pursuant to Section 203(f) of the Advisers Act. The order finds that Frohna, a resident of Waukesha, Wisconsin, and a former portfolio manager with U.S. Bancorp Asset Management, Inc., engaged in insider trading by having the mutual fund that he managed sell all of its shares of XOMA, Ltd. on the basis of material, non-public information that he obtained from his brother, who was leading a joint drug study for XOMA and another pharmaceutical company. As a result of Frohna's insider trading, the mutual fund that he managed avoided a loss of $954,776.

Specifically, the SEC alleged that Joe Frohna's brother was the leader of a bio-equivalence study for a drug being developed by XOMA and Genentech, Inc. On April 3, 2002, Joe Frohna's brother learned that the Bio-Equivalence study was unsuccessful. Later that same day, Joe Frohna called his brother and learned that the Bio-Equivalence Study was unsuccessful. The next morning, on April 4, 2002, Joe Frohna caused the fund he managed, First American Investment Fund, Inc's Micro Cap Fund, to aggressively sell all of its 332,000 XOMA shares. The following day, April 5, 2002, XOMA and Genentech publicly announced that the Bio-Equivalence Study was unsuccessful. The price of XOMA's stock fell 42% that day, from $7.63 per share to a closing price of $4.42 per share. As a result of Joe Frohna's insider trading, the Micro Cap Fund avoided a loss of $954,776.

Please for a copy of the administrative order.