Former Hollinger International Director Ordered to Cease-and-Desist and Barred for Role in Related Party Transaction Scheme

Respondent formerly was both an officer and director of Hollinger International, Inc., as well as an attorney. These proceedings arose out of a fraudulent scheme pursuant to which he and other former officers of Hollinger International, Inc. diverted corporate funds to themselves through a series of related party transactions involving purported non-competition payments. As part of the scheme, these former officers misrepresented or omitted to state material facts regarding the purported non-competition payments to Hollinger International’s Board of Directors and its Audit Committee, and caused Hollinger International to make material misstatements regarding the related party transactions in its periodic reports and proxy statements filed with the Commission.