United States Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 47313 / February 5, 2003
File No. 3-11028
Peter C. Lybrand f/k/a Peter C. Tosto
The Commission issued an Order Instituting Public Administrative Proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 against Peter C. Lybrand (Lybrand), formerly known as Peter C. Tosto, based on his alleged previous criminal conviction in United States v. Tosto, Crim. Information No. 00 Cr 1082 (DC). The Division of Enforcement alleges that Lybrand was sentenced for his conduct on March 15, 2001, by the United States District Court for the Southern District of New York.
In addition, the Division of Enforcement alleges that on March 28, 2002, the United States District Court for the Southern District of New York entered a default judgment against Lybrand, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder (Securities and Exchange Commission v. Lybrand, et al., Civil Action No. 00-1387).
The criminal complaint and the Securities and Exchange Commission's complaint alleged, among other things, that Lybrand orchestrated a complex series of transactions in which he acquired control of three shell corporations, created artificial trading markets in the stocks of those corporations, artificially inflated the prices of the stocks, and profited from the fraud through unregistered sales of the stocks into the public markets.
The Division of Enforcement instituted public administrative proceedings pursuant to Section 15(b)(6) of the Exchange Act to afford Lybrand the opportunity to establish a defense to the Order's allegations and to determine what, if any, remedial action is appropriate in the public interest, and whether a penny stock bar is appropriate, against Lybrand.