United States Securities and Exchange Commission

   Securities Act of 1933
   Release No. 7861 / June 9, 2000

   Securities Exchange Act of 1934
   Release No. 42918 / June 9, 2000

   Administrative Proceeding
   File No. 3-10221

   PUBLIC PROCEEDINGS INSTITUTED AGAINST JOHN S. REGER II AND BUSINESS &
                          FINANCIAL ADVISORS, INC.

   The United States Securities and Exchange Commission today filed
   public administrative proceedings against John S. Reger II, a West
   Virginia consultant, and his company Business & Financial Advisors,
   Inc. ("BFA"). The Commission alleges that Reger and BFA engaged in a
   fraudulent undisclosed payment arrangement in which they were paid
   $104,000 of the profits from the sale of U.S. Treasury securities to a
   West Virginia public entity (the "Board") in connection with a March
   1995 tax-exempt advance refunding transaction.

   In the order instituting administrative proceedings, the Division of
   Enforcement alleges that, in connection with the advance refunding
   transaction, Reger acted as a fiduciary to the Board and as a
   representative of a broker-dealer firm (the "Underwriter") hired by
   the Board to underwrite the tax-exempt refunding bonds. Further, the
   Division of Enforcement alleges that the Board authorized Reger and
   the Underwriter to arrange for the investment of the bond proceeds and
   the delivery of certain defeasance securities to the Board as part of
   the transaction. In this regard, Reger selected a certain firm (the
   "Escrow Provider") to sell U.S. Treasury securities to the Board, in
   return for an undisclosed payment of $104,000. The Division of
   Enforcement claims that Reger accepted this payment pursuant to an
   undisclosed payment arrangement under which Reger was to receive 40%
   of any profits resulting from advance refunding transactions directed
   to the Escrow Provider by Reger. Under this undisclosed payment
   arrangement, it is further alleged that Reger, in connection with
   three prior advance refunding transactions, received a total of
   $182,500 from the Escrow Provider. The Division of Enforcement states
   that the undisclosed payment arrangement generated various potential
   conflicts of interest and potentially jeopardized the tax-exempt
   status of the refunding bonds.

   According to the order instituting administrative proceedings, Reger
   violated the antifraud provisions of the federal securities laws by
   failing to disclose to the Board, the Underwriter or prospective bond