UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7891 / September 20, 2000
SECURITIES EXCHANGE ACT OF 1934
Release No. 43307 / September 20, 2000
ADMINISTRATIVE PROCEEDING
File No. 3-10291
In the Matter of
JONATHAN G. LEBED,
A Minor, through his
Guardian, Constance Lebed
ORDER INSTITUTING CEASE-AND-
DESIST PROCEEDING, MAKING
FINDINGS AND IMPOSING CEASE-
AND-DESIST ORDER AND OTHER
RELIEF
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate that public cease-and-desist proceedings be instituted
pursuant to Section 8A of the Securities Act of 1933 ("Securities
Act") and Section 21C of the Securities Exchange Act of 1934
("Exchange Act") against Jonathan G. Lebed ("Lebed" or "Respondent").
In anticipation of the institution of these proceedings, Lebed has
submitted an Offer of Settlement ("Offer"), which the Commission has
determined to accept. Solely for the purpose of this proceeding and
any other proceedings brought by or on behalf of the Commission or in
which the Commission is a party, and without admitting or denying the
findings contained herein, except for the jurisdiction of the
Commission over him and over the subject matter of this proceeding,
which is admitted, Lebed consents to the entry of the findings and
imposition of sanctions contained in this Order Instituting
Cease-and-Desist Proceeding, Making Findings and Imposing
Cease-and-Desist Order and Other Relief ("Order").
Accordingly, IT IS ORDERED that proceedings, pursuant to Section 8A of
the Securities Act and Section 21C of the Exchange Act, against Lebed
be, and hereby are, instituted.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
ORDER INSTITUTING CEASE-AND-DESIST PROCEEDING, MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST
The Securities and Exchange Commission deems it appropriate that public cease-and-desist
Accordingly, IT IS ORDERED that proceedings, pursuant to Section 8A of the Securities Act and
On eleven separate occasions between August 23, 1999 and February 4, 2000, Lebed engaged in a
Lebed then sold all of these shares, usually within 24 hours, profiting from the increased
During the course of the scheme, Lebed realized a total net profit of $272,826.
Almost all of the stocks that are part of this scheme were traded on the NASD Over the
Lebed conducted his trading in custodial accounts at two broker-dealers.
The postings Lebed made to Internet website message boards in connection with the eleven
In order to carry out the scheme, Lebed would acquire a position in a thinly traded microcap
Shortly thereafter, almost always on the same day as the purchase, and after the close of the
For each stock manipulation he used multiple fictitious author names.
On that day, as the stock price was rising in reaction to the hundreds of messages he had
On January 5, 2000, Lebed purchased 18,000 shares of MSHI at prices ranging from $1.375 to
Section 17of the Securities Act and Section 10of the Exchange Act and Rule 10b-5 thereunder
IT IS HEREBY ORDERED that Lebed be and hereby is ordered to cease and desist from committing
IT IS FURTHER ORDERED that Respondent shall, within seven days of the entry of this Order,
Such payment shall be made by United States postal money order, certified check, bank
ich cover letter and money order or check shall be sent to Ronald C.
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