Former CEO of Certificate Companies Pleads Guilty to Theft

The SEC announced that, on June 26, 2007, John J. Lawbaugh ("Lawbaugh"), the former Chairman of the Board of Directors, Chief Executive Officer, and majority shareholder of 1st Atlantic Guaranty Corp. ("1st Atlantic") and Chairman and CEO of SBM Certificate Company ("SBM"), both face-amount certificate companies registered with the Commission, pleaded guilty to stealing over $1.2 million from 1st Atlantic and SBM, admitting that he had diverted those funds to his own use, as well as pleading guilty to wire fraud and tax evasion charges