Miriam Santos, Peter J. Burns, and Michael F. Hollendoner

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19270 / June 14, 2005

Securities and Exchange Commission v. Miriam Santos, Peter J. Burns, and Michael F. Hollendoner, United States District Court for the Northern District of Illinois, Eastern Division, Civil Action No. 02-8236.

District Court Dismisses Claims Against Peter J. Burns Under Settlement Providing for Administrative Remedies

The Securities and Exchange Commission announced that on June 7, 2005, the Honorable James B. Zagel of the U.S. District Court in Chicago, Illinois entered an order of dismissal as to Peter J. Burns (Burns). The Court dismissed the claims against Burns with prejudice pursuant to a settlement of the Commission's claims against Burns.

Under the parties' settlement, the Commission agreed to dismiss with prejudice its claims against Burns in the civil action in exchange for Burns' agreement to the issuance by the Commission of an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order (Order) against Burns. The Order finds that, during the period 1995 to September 1998, Burns made undisclosed cash payments to Miriam Santos, who was the Treasurer of the City of Chicago at that time, to maintain a share of the City's securities investment activity. The Order also finds that the cash payments made by Burns and another registered representative were subsequently used to purchase office furniture for Santos' campaign headquarters. The Order finds that, as a result of this conduct, Burns willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

Based on the above, the Order requires Burns to cease and desist from committing or causing any violations and any future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, bars him from association with any broker or dealer with the right to reapply for association after one year to the appropriate self-regulatory organization, or if there is none, to the Commission, orders Burns to pay disgorgement of $38,143.26 and prejudgment interest of $18,137.82, and orders Burns to pay a civil money penalty of $25,000.00 in four installments of $6,250 with the first payment to be made within ten days of the entry of the Order, and the remaining installment payments made 120, 240 and 360 days after the date of the Order. Burns consented to the issuance of the Order without admitting or denying any of the findings.