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U.S. Securities and Exchange Commission

SEC News Digest

Issue 2008-136
July 15, 2008

ENFORCEMENT PROCEEDINGS

In the Matter of GSI Securitization Ltd. (n/k/a GSI Securitization, Inc.)

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in the matter of GSI Securitization Ltd. (n/k/a GSI Securitization, Inc. The Order Instituting Proceedings alleged that GSI Securitization Ltd. (n/k/a GSI Securitization, Inc.), Interliant, Inc. (n/k/a I Successor Corp.), Namibian Minerals Corp., Nix Co., Ltd., Number Nine Visual Technology Corp., and Oncor, Inc., each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission.

On July 14, the Commission accepted an offer of settlement from GSI Securitization Ltd. (n/k/a GSI Securitization, Inc.).

The Default Order finds these allegations to be true as to the other five Respondents. It revokes the registrations of each class of registered securities of Interliant, Inc. (n/k/a I Successor Corp.), Namibian Minerals Corp., Nix Co., Ltd., Number Nine Visual Technology Corp., and Oncor, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-58151; File No. 3-13044)


In the Matter of Amit Mathur

On July 14, the Commission settled an administrative proceeding previously instituted against Massachusetts-based investment adviser Amit Mathur. In an Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Order) instituted on July 14, 2008, the Commission imposed, by consent, a bar against Mathur from association with any investment adviser pursuant to Section 203(f) of the Advisers Act. The Commission imposed the sanction based on the Mathur's May 16, 2008 criminal conviction, when a jury found Mathur guilty of 20 counts of mail and wire fraud in violation of Title 18 United States Code, Sections 1341, 1342 and 1343 before the United States District Court for the District of Massachusetts, in United States v. Amit Mathur, Case No. 4:06-CR-40034FDS.

The Commission's Order included findings that during the relevant period, Mathur acted as an investment adviser not registered with the Commission and was a person associated with an unregistered investment adviser, Entrust Capital Management LLC (Entrust). In addition, the counts of the criminal indictment to which Mathur was found guilty alleged that, while acting as an investment adviser, Mathur engaged in a scheme to defraud that involved (a) misappropriation of millions of dollars of funds that Entrust's clients had provided Entrust for the purpose of investment in specific securities and in the Entrust hedge fund; and (b) misrepresentation of how money was invested and of how the hedge fund was performing, which misrepresentation was designed to induce clients to transmit funds to Entrust and to conceal the misappropriation of funds and losses experienced in the hedge fund. The criminal indictment also alleged that: (a) from approximately September 2001 until approximately March 2005, approximately fifteen clients invested approximately $16 million with Entrust to fund investments in publicly traded securities; (b) during the period from September 2001 to March 2005, Mathur represented to each of Entrust's clients that Entrust was achieving positive rates of return and that the Entrust portfolio was consistently growing in value. In fact, during the life of the Entrust hedge fund, the fund lost value every month but one. Mathur was aware of these trading losses; and (c) Mathur also never disclosed to Entrust's clients that he was diverting substantial amounts of their funds for his personal use.

In view of these findings, the Commission found it appropriate and in the public interest to impose a bar from association with any investment adviser against Mathur. Mathur consented to the entry of the Order without admitting or denying the findings contained in the Order. (Rel. IA-2754; File No. 3-13053).


Delinquent Filers' Stock Registrations Revoked

The registrations of the stock of Borough Corp., Canticle Corp., Emerald Acquisition Corp., Erebus Corp., Forward Acquisition Corp., Hercules Acquisition Corp., Jubilee Acquisition Corp., Proteque Corp., and Tecnomatic International Corp. have been revoked. None had filed any annual or quarterly reports with the Securities and Exchange Commission for six or more years. Thus, each violated a crucial provision of the federal securities laws that requires public corporations to publicly disclose current, accurate financial information so that investors may make informed decisions. The revocations were ordered in an administrative proceeding before an administrative law judge. (Rel. 34-58159; File No. 13082)


SELF-REGULATORY ORGANIZATIONS

Proposed Rule Change

The National Securities Clearing Corporation filed a proposed rule change (SR-NSCC-2007-08) under Section 19(b)(1) of the Exchange Act that would allow NSCC to amend the its rules as they relate to membership disqualification criteria in an effort to create more uniformity between the rules of NSCC and the rules of NSCC's affiliates, Fixed Income Clearing Corporation and The Depository Trust Company. Publication is expected in the Federal Register during the week of July 14. (Rel. 34-58123)


Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NYSE Arca (SR-NYSEArca-2008-72) relating to the Exchange's Quarterly Options Series Pilot Program has become immediately effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 14. (Rel. 34-58130)

A proposed rule change filed by Boston Stock Exchange relating to a new Quote Removal Mechanism Upon Technical Disconnect (SR-BSE-2008-40) 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 July 14. (34-58140)

A proposed rule change filed by International Securities Exchange relating to linkage fees (SR-ISE-2008-52) has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 14. (Rel. 34-58143)

A proposed rule change filed by the Philadelphia Stock Exchange relating to transaction charges applicable to Linkage "P" and "P/A" Orders (SR-Phlx-2008-49) 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 July 14. (Rel. 34-58144)

A proposed rule change filed by the International Securities Exchange (SR-ISE-2008-53) relating to fee changes has become immediately effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 14. (Rel. 34-58147)


SECURITIES ACT REGISTRATIONS


RECENT 8K FILINGS

 

http://www.sec.gov/news/digest/2008/dig071508.htm


Modified: 07/15/2008