Litigation Release No. 19355 / September 1, 2005

Securities and Exchange Commission v. Raymond L. Burke, Civil Action No. 05-CV-7707 (DLC) (SDNY)

The Securities and Exchange Commission today charged Raymond L. Burke, an individual who is in the business of locating dormant public companies with which private operating companies can effect reverse mergers, with illegal insider trading in the stock of Caye Chapel Inc. The complaint, which was filed in the Southern District of New York, alleges that Burke, 62, of Rye, New York, bought shares of Caye Chapel Inc., a public shell company, while aware of material nonpublic information regarding a possible reverse merger between Caye Chapel and OncBio Inc., a private operating company. After Caye Chapel announced publicly that it had entered into an agreement to acquire OncBio, the price of Caye Chapel shares increased substantially, resulting in illegal trading profits for Burke of $4,320.

Without admitting or denying the allegations in the complaint, Burke consented to entry of a proposed judgment, pending approval by the court, enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. This proposed judgment directs Burke to pay a civil penalty of $8,640 and disgorgement of $4,320 plus prejudgment interest.

*SEC Complaint in this matter