SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15385 / June 11, 1997

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 924 / June 11, 1997

SECURITIES AND EXCHANGE COMMISSION v. PATRICK J. LEONARD AND
PETER P. HARTMAN, Civil Action No. 97 11310 (PBS)
(D. Massachusetts, filed June 11, 1997)

     The Securities and Exchange Commission ("Commission") today
announced the filing of a complaint against Patrick J. Leonard
("Leonard"), former president and chief executive officer, and
Peter P. Hartman ("Hartman"), former chief financial officer, of
Cambridge Biotech Corporation ("CBC"), a biotechnology company
headquartered in Worcester, Massachusetts.  Simultaneously with
the filing of the Commission's complaint, Leonard and Hartman
consented to the entry of orders of permanent injunction from
further violations of the antifraud, corporate reporting, and
books and records provisions of the federal securities laws.
Leonard also agreed to pay a civil monetary penalty of $50,000,
while a civil monetary penalty against Hartman was not assessed
based on his demonstrated inability to pay.  The complaint
alleged that, between June 1991 and December 1992, Leonard and
Hartman structured a series of nine sales and license
transactions for which revenue should not have been recognized,
and caused CBC to improperly recognize over $6 million in revenue
on the transactions.  Leonard is a resident of Epping, New
Hampshire, and Hartman is a resident of Suwanee, Georgia.

     The complaint alleged that the transactions included
shipments of product with no expectation of payment, premature
recognition of license fee revenues, and use of corporate funds
to resolve outstanding receivables by creating the false
appearance that CBC had purchased unrelated goods and services,
when in fact CBC had simply "bought" its own product back.  The
complaint also alleged that, during the audit of CBC's 1991 and
1992 financial statements, Leonard and Hartman attempted to
deceive CBC's independent auditors by directing the completion of
the circular transactions, by obtaining false audit
confirmations, and by obtaining false documentation of agreements
having been reached in earlier periods.