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UNITED STATES OF AMERICA
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In the Matter of William E. Lyons, Respondent. |
: : : : : : : : |
ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS |
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against William E. Lyons ("Lyons" or "Respondent").
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
On the basis of this Order and Respondent's Offer, the Commission finds that
1. Lyons, age 40, was the founder and CEO of SV Group, which he operated, at all relevant times, out of his home in Great Falls, Virginia. Lyons was employed as a broker at Bear Stearns for four years and at various times held Series 7, Series 63 and Series 24 licenses. During the relevant time Lyons was associated with an unregistered broker dealer.
2. On May 3, 2004, a final judgment was entered by consent against Lyons, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 15(a) of the Exchange Act, in the civil action entitled Securities and Exchange Commission v. William E. Lyons, Civil Action Number 04-CV-459, in the United States District Court for the Eastern District of Virginia.
3. The Commission's complaint alleged that Lyons, through SV Group, offered to consummate the sale of prime bank instruments to at least four large financial institutions, including Bear Stearns, and made material oral and written misrepresentations and omissions regarding the purported investment offerings in violation of Section 17(a) of the Securities Act. The complaint further alleged that Lyons did not verify the authenticity of the purported bank guarantees or into the individuals behind them and, that by failing to do so, Lyons violated Section 17(a) of the Securities Act. The complaint also alleged that during the offering period Lyons acted as an unregistered broker dealer in violation of Section 15(a) of the Exchange Act.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Lyons' Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act that Respondent Lyons be, and hereby is barred from association with any broker or dealer, with the right to reapply for association after five years to the appropriate self-regulatory organization, or if there is none, to the Commission;
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
By the Commission.
Jonathan G. Katz
Secretary
http://www.sec.gov/litigation/admin/34-49657.htm
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