Chief Information Officer Charles Boucher to Leave SEC
The Securities and Exchange Commission today announced that Charles Boucher has decided to leave the agency after serving as its Chief Information Officer (CIO) since 2008. His plans include not-for-profit work and completion of studies in preparation for ordination as a Deacon in his church next spring.
As CIO, Mr. Boucher has managed all of the SEC's information technology programs and systems including application development, infrastructure operations, enterprise architecture, security, and user support. Mr. Boucher and his staff in the Office of Information Technology (OIT) work with the agency's divisions and offices to incorporate technology into all SEC programs to serve investors, maintain orderly markets, and promote capital formation. OIT operates the EDGAR system, which provides investors with access to millions of public company financial statements and other corporate filings. Among other information technology initiatives during Mr. Boucher's tenure, the agency began to revamp its systems for reviewing tips, complaints, and referrals.
"Effective securities regulation depends in large part on making sense of the immense volume of data generated in our securities markets. Charlie has played an important role in building a platform to implement our new system for reviewing complaints, tips and investigative leads provided by whistleblowers or other sources," said SEC Chairman Mary L. Schapiro.
"I regard my time with the SEC as having been among the most important and rewarding of my career. It has been an honor to contribute during these challenging times, and to serve with people of the highest caliber," Mr. Boucher said. "Our country, and the world, benefit from the leadership this agency is providing to reform and better regulate our financial markets, so that they continue to expand economic opportunities for all people, and so that investors are protected."
Before coming to the SEC, Mr. Boucher was an Executive Director at Morgan Stanley, and prior to that served as Senior Vice President and Chief Information Officer of Standard & Poor's. Among other earlier positions, Mr. Boucher was a Principal for Morgan Stanley, Vice President for Salomon Brothers, and Consultant Manager for Chase Manhattan. He received his BA in management from Rutgers University and an MBA in finance from Columbia University. He served in the U.S. Army Signal Corps in the early 1970s. (Press Rel. 2010-120)
Commission Revokes Registration of Securities of Applied Nanoscience, Inc. for Failure to Make Required Periodic Filings
On July 12, 2010, the Commission revoked the registration of each class of registered securities of Applied Nanoscience, Inc. (Applied Nanoscience) for failure to make required periodic filings with the Commission.
Without admitting or denying the findings in the Order, except as to jurisdiction, which it admitted, Applied Nanoscience consented to the entry of an Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to Applied Nanoscience finding that it had failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of Applied Nanoscience's securities pursuant to Section 12(j) of the Exchange Act. This order settled the proceedings brought against Applied Nanoscience in In the Matter of Applied Nanoscience, Inc., et al., Administrative Proceeding File No. 3-13943.
Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:
No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .
For further information see Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, In the Matter of Applied Nanoscience, Inc., et al., Administrative Proceeding File No. 3-13943, Exchange Act Release No. 62309, June 17, 2010. (Rel. 34-62481; File No. 3-13943)
SEC Charges Huntington Beach-Based Stock Promoter With Fraud
On July 9, 2010, the Securities and Exchange Commission filed a civil action against a Huntington Beach-based penny stock promoter, Songkram Roy Sahachaisere (Sahachaisere), and his company, InvestSource, Inc. for committing fraud while promoting stock of their clients through massive email campaigns.
In its complaint filed in the United States District Court for the Central District of California, the Commission alleges that Sahachaisere, age 40, and InvestSource provide "investor relations services" by touting various penny stocks in its daily email newsletter, called the "Daily Digest," and by posting company profiles on its website. From January 2008 to March 2009, defendants sent nearly 450 email messages publicizing these penny stocks to over 24 million recipients, receiving clients' stock as compensation. The complaint focuses on seven specific penny stocks that defendants touted in which, the Commission alleges, defendants made misleading statements regarding the nature of their compensation on InvestSource's website and in the promotional emails. The defendants also failed to disclose that they were selling the very securities they were recommending investors buy. According to the complaint, between April 2008 and March 2009, defendants sold over 5 million shares of these seven clients through one or more of their approximately 36 brokerage accounts, illegally reaping profits of at least $276,000.
The Commission's complaint charges InvestSource and Sahachaisere with violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It also charges them with violating the antitouting provisions contained in Section 17(b) of the Securities Act. The SEC's complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil monetary penalties against both defendants. In addition, the SEC seeks penny stock and officer and director bars against defendant Sahachaisere.
The Commission thanks FINRA for its cooperation and assistance in this matter.
[SEC v. InvestSource, Inc. and Songkram Roy Sahachaisere, United States District Court for the Central District of California, Case No. SACV 10-1041 DOC (RNBx)] (LR-21591)
Proposed Rule Changes
The NASDAQ Stock Market filed a proposed rule change, as modified by Amendment No. 1 (SR-Nasdaq-2010-074) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to adopt Rule 4753(c) as a six month pilot in 100 NASDAQ-listed securities. Publication is expected in the Federal Register during the week of July 12. (Rel. 34-62468)
NYSE Arca filed a proposed rule change (SR-NYSEArca-2010-64) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to listing of the Wilshire Micro-Cap ETF. Publication is expected in the Federal Register during the week of July 12. (Rel. 34-62471)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by NASDAQ OMX PHLX relating to the fees and rebates for adding and removing liquidity (SR-Phlx-2010-94) 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 12. (Rel. 34-62472)
A proposed rule change (SR-ISE-2010-74) filed by the International Securities Exchange to list and trade options on the Sprott Physical Gold Trust 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 12. (Rel. 34-62473)
Accelerated Approval of Proposed Rule Change
The Commission issued notice of filing of Amendment Nos. 2 and 3, and granted accelerated approval to a proposed rule change, as modified by Amendment Nos. 1, 2, and 3, submitted by NYSE Amex (SR-NYSEAmex-2010-31) pursuant to Rule 19b-4 under the Securities Exchange Act to adopt as a pilot program a new rule series for the trading of securities listed on the Nasdaq Stock Market pursuant to unlisted trading privileges, and amend existing NYSE Amex Equities rules as needed to accommodate the trading of Nasdaq-listed securities on NYSE Amex. Publication is expected in the Federal Register during the week of July 12. (Rel. 34-62479)
Approval of Proposed Rule Changes
The Commission approved a proposed rule change submitted by Financial Industry Regulatory Authority (SR-FINRA-2010-012) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 to amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure). Publication is expected in the Federal Register during the week of July 12. (Rel. 34-62476)
The Commission approved a proposed rule change (SR-FINRA-2010-022), filed by the Financial Industry Regulatory Authority to amend the Codes of Arbitration Procedure to increase the number of arbitrators on lists generated by the Neutral List Selection System. Publication is expected in the Federal Register during the week of July 12. (Rel. 34-62480)
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