U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19053 / January 26, 2005

SECURITIES AND EXCHANGE COMMISSION V. GRANT R. CURTIS, ET AL., Case No. 99 CIV 7357 (NG) E.D.N.Y.

DEFAULT JUDGMENT ENTERED AGAINST DEFENDANTS TIMOTHY H. MASLEY AND JONATHAN D. LYONS

The Securities and Exchange Commission announced that on January 2, 2005, the United States District Court for the Eastern District of New York entered a Default Judgment against defendant Timothy H. Masley (Masley), and on January 21, 2005, entered a Default Judgment against Jonathan Lyons (Lyons). Masley and Lyons were each enjoined from future violations of Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. Additionally, Masley was enjoined from violations of Sections 5(a) and 5(c) of the Securities Act, Section 13(d) of the Exchange Act and Rule 13d-1 thereunder, Rules 13b2-1 and 13b2-2 of the Exchange Act and, as a "control person" pursuant to Section 20(a) of the Exchange Act, of Sections 13(a) and 13(b) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder.

In addition to the injunctive relief, the Court permanently Masley barred from serving as an officer or director of a public company. The Court also ordered Masley to pay disgorgement of his ill-gotten gains and prejudgment interest in the amount of $15,591,296.83 and a $500,000 civil penalty. The Court ordered Lyons to disgorge his ill-gotten gains and prejudgment interest in the amount of $400,585.82.

The Commission filed its action against Masley, Lyons and fifteen other defendants on November 10, 1999. The Commission's Complaint alleges that, from 1994 through 1996, Masley and others exercised undisclosed control over three public companies, Windswept Environmental Group, Inc., ICIS Management Group, Inc. and Pilot Transport, Inc. Using that control, they caused these companies to issue more than eight million shares of stock, in most cases for little or no consideration, to various nominees, and then caused over five million shares of that stock, all of which was unregistered or improperly registered, to be sold to the public. The scheme generated illicit proceeds of more than $8 million. Lyons retailed the fraudulently issued stock to the public and was paid undisclosed kickbacks.

Previously, defendants Grant R. Curtis, Leo Mangan, James W. Nearen, Raimond Irni, Pedro Dibrito Gomez, Donald E. Kessler, David R. Behanna, Andrea Varsi, Kenneth A. Orr, Lillian M. Vinci and Ann Marie Noel consented to the entry of final judgments that, among other things, permanently enjoined them from future violations of the federal securities laws.

The litigation remains pending against defendants Phillip J. Milligan, Michael V. Lipkin, Joshua S. Shainberg and Robert L. Shatles in the United States District Court for the Eastern District of New York.

For further information, see Litigation Release No. 16349 (November 10, 1999).

http://www.sec.gov/litigation/litreleases/lr19053.htm