UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 

 LITIGATION RELEASE NO. 14813 / February 9, 1996 

SECURITIES AND EXCHANGE COMMISSION v. MICHAEL W. CRAWFORD, ET AL., Civil Action No. CV 95-1435 (TPJ) (D.D.C. 1995) 

      The Securities and Exchange Commission announced that, on January 31, 1996, the Honorable Thomas Penfield Jackson, United States District Judge for the District of Columbia, entered Final Judgments of Permanent Injunction and Other Relief by Consent against Michael P. Melnick and Greenbriar Financial Services Corp.  The Final Judgments enjoin Melnick and Greenbriar from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.   Melnick and Greenbriar consented to the Final Judgements without admitting or denying the allegations of the Commission's Complaint, which was filed on August 1, 1995.  The Final Judgments also order disgorgement of funds obtained as a result of conduct alleged in the Complaint and prejudgment interest, but waive the payment of disgorgement and prejudgment interest based in Melnick's and Greenbriar's demonstrated inability to pay.  Based on Melnick's and Greenbriar's demonstrated inability to pay, the Final Judgments do not impose civil penalties. 

     The Commission also announced that on January 4, 1996, Judge Jackson entered a default judgment against Michael W. Crawford and Libra Investments, Ltd.   The default judgment permanently enjoins Crawford and Libra from violations of Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder, and Sections 203(a), 206(1) and (2) of the Investment Advisers Act of 1940, and orders Crawford and Libra, jointly and severally, to pay disgorgement in the amount of $80,000, plus $13,959.10 in prejudgment interest.  Crawford and Libra are also ordered to pay civil penalties of $100,000 and $500,000, respectively, pursuant to Section 21(d)(3) of the Exchange Act. 

     The Commission's Complaint alleged that the violations arose out of the sale of "prime bank guarantees" issued by Banka Bohemia, A.S., a now defunct Czech Republic financial institution, to the National Council of the Churches of Christ in the U.S.A ("NCCC"), a not-for-profit charitable organization, in December 1993.  The NCCC paid $7.98 million to purchase $13.2 million face value of the guarantees, which were worthless.  According to the Complaint, the defendants made fraudulent misrepresentations and omissions of material fact in inducing the NCCC to buy the worthless "prime bank" securities.  The Complaint further alleged that Crawford and Libra acted as investment advisers without having registered as such with the Commission, and that they undertook fraudulently to induce other parties in addition to the NCCC to use their purported investment management and advisory services.