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U.S. Securities and Exchange Commission


Release No. 44586 / July 24, 2001

File No. 3-10538

In the Matter of Leonard B. Greer,

The Securities and Exchange Commission ("SEC") instituted public administrative proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Leonard B. Greer ("Greer"), of Rye, New York, based on a permanent injunction that was entered against him in a market manipulation case. The Division of Enforcement alleges that, on June 5, 2001, in SEC v. Greer, et al., the U.S. District Court for the Southern District of New York entered an order against Greer, by consent, enjoining him from violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(d)(1) and 13(d)(2) of the Exchange Act and Rules 10b-5, 13d-1 and 13d-2 promulgated thereunder.

In the Complaint in SEC v. Greer, et al., filed on September 30, 1997, the Division of Enforcement alleged that, from January 1994 through April 1994, Greer fraudulently manipulated the market price of the stock of AFGL International, Inc. from $1 to $7 per share. The Division of Enforcement alleged that Greer accomplished the manipulation by controlling the supply of AFGL stock that was available to the market; by accumulating over two-thirds of the freely-tradable AFGL stock in the proprietary account of his firm, L.C. Wegard & Co., Inc.; by exerting price leadership to increase the market price of AFGL stock; and by generating retail demand for AFGL stock. The Division of Enforcement further alleged that, during an intensive nine-day selling effort that began on April 20, 1994, Greer's firm, Wegard, sold over 1 million shares of AFGL stock to its customers, at artificially inflated prices, netting a profit of approximately $3.5 million. The Division of Enforcement also alleged that, during the relevant period, although Wegard acquired over 5% of the outstanding shares of AFGL stock, and thereafter made further acquisitions in excess of 1% of Wegard's holdings, Greer and Wegard failed to file a Schedule 13D with the Commission, or any amendments thereto, as required by Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2 thereunder.

A public hearing will be held before an Administrative Law Judge to determine whether the allegations in the order are true, to afford Greer an opportunity to establish any defenses to the allegations, and to determine what remedial action, if any, is appropriate.


Modified: 07/24/2001