Salomon Smith Barney (SSB) allocated hundreds of thousands of shares in initial public offerings to Bernie Ebbers, former chief executive of WorldCom and sold IPO stock to Scott Sullivan, WorldCom's disgraced former chief financial officer, as recently as March of this year.

SSB sold Sullivan, now awaiting trial for fraud, shares in Travelers Property Casualty, spun off by SSB's parent Citigroup in March. Sullivan also received shares from Kraft Food's IPO last June.