UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 63813 / February 1, 2011
Administrative Proceeding
File No. 3-13532
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In the Matter of Prime Capital Services, Inc.,
Respondents. |
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NOTICE OF PROPOSED MODIFIED PLAN OF DISTRIBUTION AND OPPORTUNITY FOR COMMENT |
Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed modified plan for the distribution of the Fair Fund in this matter ("Modified Distribution Plan").
OPPORTUNITY FOR COMMENT
Pursuant to this Notice, all interested parties are advised that they may print a copy of the proposed Modified Distribution Plan from the Commission's public website, http://www.sec.gov/. Interested persons may also obtain a copy of the Modified Distribution Plan by submitting a written request to Robert J. Keyes, Associate Regional Director and Chief of Regional Office Operations of the New York Regional Office, United States Securities and Exchange Commission, 3 World Financial Center, Room 400, New York, New York 10281-1022. All persons who desire to comment on the Modified Distribution Plan may submit their comments, in writing, no later than thirty days from the date of this Notice:
- to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549-1090;
- by using the Commission's Internet comment form (www.sec.gov/litigation/admin.shtml); or
- by sending an e-mail to rule-comments@sec.gov.
Comments submitted by e-mail or via the Commission's website should include "Administrative Proceeding File No. 3-13532" on the subject line. Comments received will be publicly available. Persons should submit only information that they wish to make publicly available.
MODIFIED DISTRIBUTION PLAN
On March 16, 2010, the Commission issued an Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934 as to Prime Capital Services, Inc. and Gilman Ciocia, Inc. (Rel. No. 33-9113) (the "Order"). Simultaneously with the entry of the Order, the Commission accepted settlement offers from Respondents Prime Capital Services, Inc. ("PCS") and Gilman Ciocia, Inc. ("G&C") in which they consented to the entry of the Order without admitting or denying the Order's findings.
The Fair Fund is comprised of the following amounts: PCS was ordered to pay a total of $144,262.58 in disgorgement and prejudgment interest to the Commission, and G&C was ordered to pay a total of $450,001.00 in disgorgement and civil penalties to the Commission. The Commission established a Fair Fund pursuant to Section 308 of the Sarbanes-Oxley Act of 2002 for these payments (the "Fair Fund"). The funds received by the Commission have been deposited at the U.S. Treasury. Payments from other respondents in this administrative proceeding may be added to the Fair Fund if so ordered by the Commission. Other than these items, it is not anticipated that the Fair Fund will receive additional funds.
The Division of Enforcement previously filed a different version of a proposed distribution plan, which was noticed for comment on September 23, 2010.1 The principal difference between the previous version of the plan and the Modified Distribution Plan is that the Modified Distribution Plan makes no provision for distribution of consequential costs to Eligible Investors, such as costs they incurred in hiring private legal counsel. As did the previous version of the plan, the Modified Distribution Plan provides for distribution to compensate Eligible Investors for fees and charges relating to their variable annuities but not for market gains or losses.
For the Commission, by its Secretary, pursuant to delegated authority.
Elizabeth M. Murphy
Secretary
1 The previous notice was posted on September 23, 2010 the Commission's website at http://www.sec.gov/litigation/admin/2010/34-62979.htm. The previous version of the proposed distribution plan was posted on the Commission's website on September 23, 2010 at: http://www.sec.gov/litigation/admin/2010/34-62979-pdp.pdf. Copies of the notice and original plan also were mailed to all Eligible Investors. No comments were received in response to the notice.