U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19978 / January 24, 2007

SEC v. Peter Lombardi, Case No. 06-20665-CR-HUCK

Former Viatical Firm Executive Peter Lombardi Sentenced to Twenty Years

The United States Securities and Exchange Commission ("SEC") announced that on January 19, 2007, the Honorable Paul C. Huck, United States District Judge for the Southern District of Florida, sentenced Peter Lombardi, a former President and sole shareholder of Mutual Benefits Corp., to twenty years in prison, followed by three years of supervised release for his involvement in a viatical and life settlement scheme in which 28,000 investors lost over $800 million.

Lombardi is also a defendant in the related SEC civil action filed on May 3, 2004, in the Southern District of Florida. In the SEC's action, he consented to the entry of a Final Judgment of Permanent Injunction and Other Relief, which the Court entered on December 2, 2005. The judgment enjoined him from future violations of the antifraud and registration provisions of the federal securities laws and ordered him to pay disgorgement in the amount of $5,774,160, plus prejudgment interest of $105,840 and a civil penalty of $120,000. Lombardi paid the judgment in full.

For additional information, see Litigation Release No. 18698 (May 6, 2004), Litigation Release No. 19274 (June 20, 2005) and Litigation Release No. 19480 (December 1, 2005).

http://www.sec.gov/litigation/litreleases/2007/lr19978.htm