UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE No. 17669 / August 9 , 2002
DISTRICT COURT PROCEEDINGS RESOLVED AS TO ANDREW P. BODNAR, THOMAS E. BUCK, AND CBT-OHIO, LTD.; ADMINISTRATIVE PROCEEDINGS RESOLVED AS TO ANDREW P. BODNAR
SEC v. CBT-Ohio, Ltd., et al., C.A No. CV 5:99-822 (N.D. OH)
The Securities and Exchange Commission ("Commission") announced the resolution of the district court proceedings in SEC v. CBT-Ohio, Ltd., et al., formerly pending in the United States District Court for the Northern District of Ohio. Specifically, on April 16, 2002, the Honorable Dan A. Polster entered default judgment against Andrew P. Bodnar and CBT-Ohio, Ltd. ("CBT") in an action alleging violations of the anti-fraud and registration provisions of the federal securities laws. In addition, on May 31, 2002, Judge Polster entered a final judgment against the only remaining defendant, Thomas E. Buck, who consented to the judgment without admitting or denying the allegations in the complaint. See SEC v. CBT-Ohio, Ltd., et al., 5:99 CV 822 (N.D. Oh).
The Commission further announced the resolution of related administrative proceedings before Chief Administrative Law Judge Brenda P. Murray. Specifically, on June 28, 2002, Judge Murray entered a default order imposing sanctions against Bodnar. See In the Matter of Andrew P. Bodnar, Release No. 34-46142, 2002 SEC LEXIS 1684 (June 28, 2002).
The district court action and the administrative proceeding were based on allegations that the defendants engaged in a fraudulent scheme through which they raised millions of dollars from investors in several different states. The district court complaint and the order instituting administrative proceedings alleged, variously, violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5.
The district court judgments permanently enjoin Bodnar, CBT, and Buck from violating the referenced securities laws and require Bodnar to pay a third-tier penalty of $110,000. The administrative order bars Bodnar from association with a broker or dealer.