SEC News Digest

COMMISSION ANNOUNCEMENTS

Securities and Exchange Commission Suspends Trading in VoIP, Inc. for Failure to Make Required Periodic Filings

The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act), of trading of the securities of VoIP, Inc. of Altamonte Springs, Florida at 9:30 a.m. EDT on April 13, 2009, and terminating at 11:59 p.m. EDT on April 24, 2009.

The Commission temporarily suspended trading in the securities of VoIP because of questions that have been raised about the lack of current and accurate information concerning the securities of VoIP because it has not filed not filed an Annual Report on Form 10-K since Dec. 31, 2006 or periodic or quarterly reports on Form 10-Q for any fiscal period subsequent to its fiscal quarter ending Sept. 30, 2007.

The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.

Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to VoIP's securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

If any broker, dealer or other person has any information which may relate to this matter, he should contact Teresa J. Verges, Assistant Regional Director, at the Miami Regional Office of the Securities and Exchange Commission, at (305) 982-6384. (Rel. 34-59750)

ENFORCEMENT PROCEEDINGS

In the Matter of Jesus A. Lago, CPA

On April 13, the Commission issued an Order Instituting Public Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions (Order) against Jesus A. Lago, CPA. Lago, formerly of Berkovits, Lago & Co. (BLC), served as the engagement partner for the 2004 financial statement audit of the telecommunication company, VoIP, Inc. (VoIP). Simultaneously with the entry of the Order, the Commission accepted Lago's settlement offer in which he consented to the entry of the Order without admitting or denying the Order's findings.

The Order finds that Lago engaged in improper professional conduct within the meaning of Rule 102(e)(1)(ii) of the Commission's Rules of Practice by engaging in repeated instances of unreasonable conduct. Specifically, the Order finds that: (1) Lago did not adequately conduct VoIP's 2004 financial statement audit in accordance with the auditing standards of the Public Company Accounting Oversight Board (PCAOB); (2) Lago did not properly plan and supervise the VoIP audit because he did not incorporate, or require the BLC audit team to incorporate, the known audit risks into the audit plan for VoIP; and he further did not require the BLC audit team to perform the most basic preliminary and analytical procedures necessary for audit planning and fraud consideration; (3) he did not exercise due professional care and maintain an attitude of professional skepticism because he failed to obtain sufficient competent evidential matter when his audit team performed only limited procedures regarding the existence and accuracy of VoIP's recorded revenues and accounts receivable; (4) Lago failed to adequately staff and supervise VoIP's 2004 audit; and (5) he failed to ensure adequate work paper documentation for the VoIP audit. Each instance of unreasonable conduct resulted in a violation of the applicable professional standards that indicated a lack of competence to practice before the Commission.

Based on the above, the Order denies Lago the privilege of appearing or practicing before the Commission as an accountant; after one year from the date of the Order, Lago may request that the Commission consider his reinstatement by submitting an application to resume appearing or practicing before the Commission. (Rel. 34-59751; AAE Rel. 2960; File No. 3-13439)

In the Matter of VoIP, Inc.

On April 13, the Commission issued an administrative proceeding against VoIP, Inc. (VoIP) pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act). VoIP is a Texas corporation headquartered in Altamonte Springs, Florida. The purpose of the proceeding is to determine whether the registration of VoIP's common stock should be suspended for a period not exceeding twelve months or revoked. The Division of Enforcement (Division) alleges that VoIP failed to comply with Section 13(a) of the Exchange Act and Exchange Act Rules 13a-1 and 13a-13, by not filing an Annual Report on Form 10-K since December 31, 2006 or periodic or quarterly reports on Form 10-Q for any fiscal period subsequent to its fiscal quarter ending Sept. 30, 2007.

A hearing will be scheduled to take evidence on the Division's allegations, to afford VoIP the opportunity to establish defenses to the allegations, and to determine whether the registration of VoIP's common stock should be suspended for a period not exceeding twelve months or revoked. The Commission ordered that the Administrative Law Judge in these proceedings issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-59752; File No. 3-13440)

SELF-REGULATORY ORGANIZATIONS

Proposed Rule Changes

Financial Industry Regulatory Authority filed a proposed rule change and Amendment No. 1 thereto (SR-FINRA-2009-010) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder to expand TRACE to include agency debt securities and primary market transactions. Publication is expected in the Federal Register during the week of April 6. (Rel. 34-59733)

A proposed rule change (SR- FINRA-2009-017) has been filed by the Financial Industry Regulatory Authority pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder regarding a proposal to adopt NYSE Rule 406 (Designation of Accounts) as a FINRA Rule in the Consolidated FINRA Rulebook. Publication is expected in the Federal Register during the week of April 6. (Rel. 34-59745)

Immediate Effectiveness of Proposed Rule Changes

The Commission issued notice of filing and immediate effectiveness of a proposed rule change (SR-NYSEAmex-2009-10) filed by NYSE Amex under Rule 19b-4 of the Securities Exchange Act of 1934 amending rule 975NY - obvious errors and catastrophic errors. Publication is expected in the Federal Register during the week of April 6. (Rel. 34-59736)

A proposed rule change filed by NYSE Amex making available an NYSE Amex Order Imbalance Information datafeed as a separate, stand-alone market data product (SR-NYSEAmex-2009-11) 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 April 6. (Rel. 34-59743)

The Commission issued notice of filing and immediate effectiveness of a proposed rule change (SR-OC-2009-01) filed by OneChicago under Rule 19b-7 of the Securities Exchange Act of 1934 eliminating the $3 market price maintenance standard. Publication is expected in the Federal Register during the week of April 6. (Rel. 34-59744)

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http://www.sec.gov/news/digest/2009/dig041309.htm