Jane Jarcho Named Associate Regional Director for Examinations in SEC's Chicago Regional Office
The Securities and Exchange Commission today announced the appointment of Jane Jarcho as an Associate Regional Director for Examinations in its Chicago Regional Office (CHRO). In her new position, Ms. Jarcho will oversee the Commission's examinations of registered investment advisers and investment companies in the nine-state territory covered by the CHRO: Kentucky, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin. Ms. Jarcho will lead a staff of approximately 70 accountants and examiners in conducting compliance examinations and compliance outreach programs for investment advisers, investment companies and transfer agents.
Lori Richards, Director of the Office of Compliance Inspections and Examinations, said, "Jane Jarcho brings significant leadership qualities to this position. I'm confident that investors in the region will be well served by her appointment and that they will continue to be well served by the outstanding team of examiners and accountants in the Chicago Regional Office."
Merri Jo Gillette, Director of the Chicago Regional Office, said, "Jane brings a wealth of experience and demonstrated management ability to her new position. She has a well earned reputation for being energetic, informed, tenacious, efficient and fair. I look forward to working closely with Jane as she brings her talents to bear on an already outstanding examination program."
Ms. Jarcho said, "I am very fortunate to be joining many talented and dedicated staff members who have made the Chicago Regional Office's examination program so successful. I have worked with many members of the examination staff and feel honored to be joining them. I am excited about focusing my energies in the investment adviser and investment company area and look forward to this opportunity."
Ms. Jarcho has been with the Commission for 18 years, having most recently served as an Assistant Regional Director for Enforcement in the CHRO. She has been involved in numerous enforcement matters involving investment advisers and investment companies and led the CHRO's multiple investigations involving market timing and late trading. Prior to joining the Commission, she practiced with two law firms in Chicago. Ms. Jarcho received her J.D. degree in 1986 from the University of Wisconsin, and graduated from Middlebury College in 1982. (Press Rel. 2008-51)
Change In The Meetings: Date and Time Change
The closed meeting scheduled for Monday, March 31, 2008, at 10:00 a.m., has been changed to Wednesday, April 2, 2008 at 10:00 a.m.
At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.
Lynn R. Michl, CPA Reinstated to Appear and Practice Before the Commission as an Accountant Responsible for the Preparation or Review of Financial Statements Required to be Filed With the Commission
Pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice, Lynn R. Michl, CPA has applied for and been granted reinstatement of his privilege to appear and practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission. Mr. Michl was suspended from appearing or practicing before the Commission on Dec. 23, 1997. His reinstatement is effective immediately. (Rel. 34-57560; AAE Rel. 2804; File No. 3-9516)
Steven H. Barry, CPA, Reinstated to Appear and Practice before the Commission as an Accountant
Pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice, Steven H. Barry, CPA, has applied for and been granted reinstatement of his privilege to appear and practice before the Commission as an accountant. Mr. Barry was denied the privilege of appearing or practicing before the Commission on April 26, 2005. His reinstatement is effective immediately. (Rel. 34-57563; AAE Rel. 2805; File No. 3-11911)
In the Matter of Rochelle Roman
On March 26, the Commission issued an Order Instituting Administrative Proceedings Pursuant to 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (Order) against Rochelle Roman, age 39, of Hazlet, NJ. The Order finds that from 1997 to 2005, Roman was a securities lending representative associated with Kellner Dileo & Co. (Kellner), a broker-dealer registered with the Commission. The Order further finds that on June 25, 2007, Roman pled guilty to one count of conspiracy to commit securities fraud and wire fraud in violation of Title 18 United States Code, Section 1349 before the United States District Court for the Eastern District of New York, in United States v. Rochelle Roman, Crim. Information No. 07-CR-493. The count of the criminal information to which Roman plead guilty alleged, inter alia, that Roman, together with others, did knowingly and intentionally conspire to execute a scheme and artifice to defraud Kellner of money and property and to obtain money and property from Kellner by means of materially false and fraudulent pretenses, representations and promises and in executing such scheme and artifice did so by means of wire communication in interstate and foreign commerce.
Based on the above, the Order bars Roman from association with any broker or dealer. Roman consented to the issuance of the Order without admitting or denying any of the Commission's findings, except her guilty plea on June 25, 2007. (Rel. 34-57565; File No. 3-12998)
In the Matter of Val E. Southwick
The Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities and Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (Order) against Val E. Southwick. The Order finds that on Feb. 26, 2008, a final judgment was entered by consent against Southwick, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 15(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, in the civil action entitled SEC v. Val E. Southwick, et al., Civil Action Number 2:07-CV-0235, in the United States District Court for the District of Utah.
Based on the above, the Order bars Southwick from association with any broker or dealer. Val E. Southwick consented to the issuance of the Order without admitting or denying any of the findings in the Order; however, he admitted the entry of the injunction against him. (Rel. 34-57569; File No. 3-12999)
SEC Charges Three with Fraudulently Raising Over $11 Million from more than 100 Investors
On March 26, the Commission filed a complaint in the United States District Court for the Northern District of Texas against Gary L. McDuff, Gary L. Lancaster, and Robert T. Reese, for their roles in the fraudulent and unregistered offer and sale of interests in the Lancorp Financial Fund Business Trust (Lancorp Fund).
In its complaint, the Commission alleges that in early 2003, Lancaster created the Lancorp Fund at McDuff's direction. McDuff and Lancaster then created a materially false and misleading Private Placement Memorandum (PPM) for the Lancorp Fund, and between at least March 2003 and July 2005, Reese, McDuff and Lancaster offered and sold interests in the Lancorp Fund with false promises concerning the permissible investments, the payment of commissions, and the payment of management fees. Instead, the complaint alleges that the defendants directed the Lancorp Fund to invest over $9 million in a fraudulent, high-yield Ponzi scheme, paid McDuff and Reese over $300,000 in undisclosed commissions, and paid Lancaster a management fee well in excess of that allowed by the PPM.
The complaint alleges that McDuff, Lancaster, and Reese violated Sections 5(a), 5(c) and 17(a) or the Securities Act of 1933 (Securities Act), and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The complaint also alleges that Lancaster violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (Advisers Act), and that McDuff and Reese aided and abetted Lancaster's Advisers Act violations. The Complaint seeks permanent injunctions, disgorgement together with prejudgment interest, and civil penalties.
Without admitting or denying the allegations set forth in the complaint, defendants Lancaster and Reese have consented to the entry of a final judgment permanently enjoining them from engaging in the violations set forth above. Lancaster has agreed to an order finding him liable for disgorgement of $336,229, plus prejudgment interest of $56,156.39, and Reese has agreed to an order finding him liable for disgorgement of $26,792, plus prejudgment interest of $4,474.75. However, payment of those amounts will be waived, and no civil penalties imposed, based on their respective sworn statements of financial condition and other documents. The Commission's action against McDuff is continuing. [SEC v. Gary L. McDuff, Gary L. Lancaster, and Robert T. Reese, Civil Action No. 3-08-CV-526 (U.S.D.C./N.D. Texas, Dallas Division)] (LR-20512)
INVESTMENT COMPANY ACT RELEASES
Advisors Series Trust and FundQuest Incorporated
An order has been issued on an application filed by Advisors Series Trust and FundQuest Incorporated exempting them from Section 15(a) of the Investment Company Act and Rule 18f-2 under the Act. The order permits the applicants to enter into and materially amend subadvisory agreements without shareholder approval and grants relief from certain disclosure requirements. (Rel. IC-28201 - March 25)
Eaton Vance Mutual Funds Trust, et al.
An order has been issued on an application filed by Eaton Vance Mutual Funds Trust, et al., under Section 6(c) of the Investment Company Act for an exemption from Rule 12d1-2(a) under the Act. The order permits funds of funds relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-28202 - March 25)
RSI Retirement Trust
An order has been issued under Section 8(f) of the Investment Company Act declaring that RSI Retirement Trust has ceased to be an investment company. (Rel. IC-28203 - March 26)
Deregistrations Under the Investment Company Act
Orders have been issued under Section 8(f) of the Investment Company Act declaring that each of the following has ceased to be an investment company:
Proposed Rule Changes
The International Securities Exchange filed a proposed rule change (SR-ISE-2008-28) relating to the exposure of public customer orders. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57551)
The International Securities Exchange filed a proposed rule change and Amendment No. 1 thereto (SR-ISE-2008-25) relating to amendments to the Rescission of the "No MPM" Order Type. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57557)
Approval of Proposed Rule Changes
The Commission issued an order approving a proposed rule change and Amendment Nos. 1 and 2 thereto (SR-ISE-2007-76) filed by the International Securities Exchange relating to voluntary professionals. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57553)
The Commission granted approval to a proposed rule change (SR-CBOE-2008-08) submitted by the Chicago Board Options Exchange regarding CBOE Rules 6.45A and 6.45B. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57558)
Immediate Effectiveness of Proposed Rule Change
A proposed rule change filed by the New York Stock Exchange to extend the compliance deadline for NYSE members to complete required 2007 continuing education modules under NYSE Rule 103A (SR-NYSE-2008-18) has become effective pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 31. (Rel. 34-57555)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS