Edwin Buchanan Lyon, IV was named in a civil complaint by the SEC today for $6.5 Million in illegal profits made by shorting PIPE issues and covering the short with the shares.
36 seperate PIPE transactions are listed in the complaint, ranging from 2001 to January 2004. Lyon mostly worked with an unnamed Canadian broker to short stocks in advance of PIPE share registration, the shares were covered with the discount PIPE shares for a guaranteed and illegal profit.
Baystar and Lyon were co-investors in several of the named illegal actions: Heartland Oil, Genome Therapeutics, etc. Baystar and Lyon also participated in the oddly timed and Lindon local Raser PIPE in summer 2004, but this is not one of the named illegal sales.
http://www.sec.gov/litigation/complaints/2006/comp19942.pdf