SECURITIES ACT OF 1933
Release No. 7852 / April 17, 2000

SECURITIES EXCHANGE ACT OF 1934
Release No. 42692 / April 17, 2000

ADMINISTRATIVE PROCEEDING
File No. 3-9104

In the Matter of

MARK SAVAGE,
GEORGE PANAGIOTOU, JR.,
and DEAN VERRIGNI
Respondents.

ORDER MAKING FINDINGS,
IMPOSING REMEDIAL
SANCTIONS AND
CEASE-AND-DESIST ORDERS

I.

In connection with the public administrative and cease-and-desist proceedings instituted against them pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Sections 15(b), 19(h) and 21(C) of the Securities Exchange Act of 1934 ("Exchange Act"), Mark Savage ("Savage"), George Panagiotou, Jr. ("Panagiotou") and Dean Verrigni ("Verrigni") have each submitted an Offer of Settlement ("Offer") to the Securities and Exchange Commission ("Commission"), 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 in which the Commission is a party, and without admitting or denying the findings contained herein, except as to jurisdiction of the Commission over them, which is admitted, Savage, Panagiotou and Verrigni consent to the entry of the findings and remedial sanctions set forth below.

II.

On the basis of this Order and the Offers submitted by Savage, Panagiotou and Verrigni, the Commission makes the following findings:1

A. The securities of San Diego Bancorp ("SDB") are registered with the Commission pursuant to Section 12(g) of the Exchange Act and its stock has traded since at least 1993 over-the-counter on the National Association of Securities Dealers Inc.'s ("NASD") electronic bulletin board.

B. Savage was employed as a registered representative ("RR") by Greenway Capital, Inc., a registered broker-dealer, in one of its New York City offices, from approximately September 1993 to January 1994. Savage is currently serving a nine month sentence in a federal prison in Otisville, New York. See United States of America v. Mark Anthony Savage, 97 CR 0331 (SHS).

C. Panagiotou was employed as an RR by Dean Witter Reynolds, Inc. ("Dean Witter"), a registered broker-dealer, from approximately September 1992 to January 1994.

D. Verrigni, 38 years old, resides in Wappingers Falls, New York. He was registered as an RR from 1986 through January 1994. Verrigni was employed by Tucker Anthony, Inc., ("Tucker Anthony"), a registered broker-dealer, in its Stamford, Connecticut office, from approximately September 1993 to January 1994.

E. From approximately September 1993 to April 1994, Savage, Panagiotou and Verrigni willfully violated Section 17(a) of the Securities Act in that, in the offer or sale of securities, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, directly or indirectly, they employed devices, schemes or artifices to defraud; obtained money or property by means of untrue statements or material facts or omitted to state material facts necessary in order to make the statements made, not misleading; or engaged in transactions, practices or courses of business which operated or would operate as a fraud or deceit upon the purchaser. For example, Savage, Panagiotou and Verrigni accepted payments from a promoter and/or the major SDB shareholder for generating market activity in SDB stock by soliciting and effectuating the purchases of SDB stock by retail customers or for recruiting others to solicit such purchases. Savage, Panagiotou and Verrigni failed to disclose to these retail customers that they would receive, and later did receive, payments from a promoter and or the major shareholder of SDB as compensation for selling the SDB stock to their customers.

F. From approximately September 1993 to April 1994, Savage, Panagiotou and Verrigni willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder in that, directly or indirectly, by use of the means or instrumentalities of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of securities, Savage, Panagiotou and Verrigni employed devices, schemes or artifices to defraud; made untrue statements of material facts or omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or engaged in practices or courses of business which operated or would operate as a fraud or deceit upon any person. For example, Savage, Panagiotou and Verrigni engaged in the conduct described in Section II.E. above.

G. Savage has submitted a sworn financial disclosure statement, dated April 10, 1999, which was updated on July 16, 1999, and other evidence, and has asserted his financial inability to pay disgorgement and prejudgment interest thereon, or a civil penalty. The Commission has reviewed Savage's sworn financial statement and other evidence provided by Savage and has determined that Savage does not have the financial ability to pay disgorgement in the amount of $25,000, prejudgment interest thereon, or a civil penalty.

H. Panagiotou has submitted a sworn financial disclosure statement, dated April 5, 1999, which was updated on July 23, 1999 and February 1, 2000, and other evidence, and has asserted his financial inability to pay disgorgement in the amount of $16,500, prejudgment interest thereon, or a civil penalty. The Commission has reviewed Panagiotou's sworn financial statement and has determined that Panagiotou does not have the financial ability to pay more than $6,000 in disgorgement, prejudgment interest thereon, or a civil penalty.

III.

Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offers of Respondents Savage, Panagiotou and Verrigni, accordingly:

IT IS HEREBY ORDERED that:

1. Savage cease and desist, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and

2. Effective immediately, Savage be, and hereby is, barred from associating with any broker or dealer; and

3. Savage shall pay disgorgement in the amount of $25,000, plus prejudgment interest thereon, but that payment of such amount be waived based upon Savage's demonstrated inability to pay. The Division of Enforcement ("Division") may, at any time following entry of this Order, petition to: (i) reopen this matter to reconsider whether Savage provided accurate and complete financial information at the time such representations were made; (ii) determine the amount of the civil penalty to be imposed; and (iii) seek any additional remedies that the Commission would be authorized to impose in this proceeding if Savage's Offer had not been accepted. No other issue shall be considered in connection with this petition other than whether the financial information provided by Savage was fraudulent, misleading, inaccurate or incomplete in any material respect, the amount of civil penalty to be imposed, and whether any additional remedies should be imposed. Savage may not, by way of any defense to any such petition, contest the findings in the Order or the Commission's authority to impose any additional remedies that were available in the original proceeding.

IT IS FURTHER ORDERED that:

1. Panagiotou cease and desist, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;

2. Effective immediately, Panagiotou be, and hereby is, barred from associating with any broker or dealer; and

3. Panagiotou shall pay disgorgement in the amount of $16,500, plus prejudgment interest thereon, but that payment of all but $6,000 in disgorgement be waived based upon Panagiotou's demonstrated inability to pay. Panagiotou should pay disgorgement in the amount of $6,000 pursuant to the payment plan outlined below:

a. Pursuant to the Order, Panagiotou shall pay $6,000 in disgorgement in five installments of $1,200 over a thirty month period to the United States Treasury. Panagiotou's first payment of $1,200 would be due six months after the Order is dated. Panagiotou's second payment of $1,200 would be due twelve months after the Order is dated. Panagiotou's third payment of $1,200 would be due eighteen months after the Order is dated. Panagiotou's fourth installment of $1,200 would be due twenty-four months after the Order is dated. Panagiotou's fifth installment of $1,200 would be due thirty months after the Order is dated.

b. The funds owed by Panagiotou shall be:

i. Paid by United States postal money order, certified check, bank cashier's check or bank money order, to the United States Securities and Exchange Commission;

ii. Made payable to the United States Securities and Exchange Commission;

iii. Hand-delivered or sent by certified mail to the Comptroller, Securities and Exchange Commission Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312; and

iv. Submitted under cover letter which identifies Panagiotou as a Respondent in this proceeding, the file number of this proceeding (AP File No. 3-9104), a copy of which cover letter and money order or check shall be sent to Kay Lackey, Assistant Regional Director, Northeast Regional Office, Securities and Exchange Commission, 7 World Trade Center, 13th Floor, New York, New York 10048.

4. The Commission's Division of Enforcement ("Division") may, at any time following entry of this Order, petition to: (i) reopen this matter to reconsider whether Panagiotou provided accurate and complete financial information at the time such representations were made; (ii) determine the amount of the civil penalty to be imposed; and (iii) seek any additional remedies that the Commission would be authorized to impose in this proceeding if Panagiotou's Offer had not been accepted. No other issue shall be considered in connection with this petition other than whether the financial information provided by Panagiotou was fraudulent, misleading, inaccurate or incomplete in any material respect, the amount of civil penalty to be imposed, and whether any additional remedies should be imposed. Panagiotou may not, by way of any defense to any such petition, contest the findings in the Order or the Commission's authority to impose any additional remedies that were available in the original proceeding.

IT IS FURTHER ORDERED that:

1. Verrigni cease and desist, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;

2. Effective immediately, Verrigni be, and hereby is, barred from associating with any broker or dealer; and

3. Verrigni shall pay a civil penalty in the amount of $10,000.

a. Pursuant to the Order, Verrigni shall pay $3,000 three days after the Order is dated and then make five payments of $1,200 followed by one payment of $1,000 every six months over a thirty-six month period to the United States Treasury. Accordingly, Verrigni's first installment of $3,000 would be due three days after the Order is dated. Verrigni's second installment of $1,200 would be due six months after the Order is dated. Verrigni's third installment of $1,200 would be due twelve months after the Order is dated. Verrigni's fourth installment of $1,200 would be due eighteen months after the Order is dated. Verrigni's fifth installment of $1,200 would be due twenty-four months after the Order is dated. Verrigni's sixth installment of $1,200 would be due thirty months after the Order is dated. Verrigni's seventh installment of $1,000 would be due thirty-six months after the Order is dated.

b. The funds owed by Verrigni shall be:

i. Paid by United States postal money order, certified check, bank cashier's check or bank money order to the United States Securities and Exchange Commission;

ii. Made payable to the United States Securities and Exchange Commission;

iii. Hand-delivered or sent by certified mail to the Comptroller, Securities and Exchange Commission Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312; and

iv. Submitted under cover letter which identifies Verrigni as a Respondent in this proceeding, the file number of this proceeding (AP File No. 3-9104), a copy of which cover letter and money order or check shall be sent to Kay Lackey, Assistant Regional Director, Northeast Regional Office, Securities and Exchange Commission, 7 World Trade Center, 13th Floor, New York, New York 10048.

By the Commission.

Jonathan G. Katz

Secretary


Footnotes

1 The findings contained herein are solely for the purpose of these proceedings and are not binding on any other person or entity named in the proceeding or any other proceeding.