Following is a schedule of Commission meetings, which will be conducted under provisions of the Government in the Sunshine Act. Meetings will be scheduled according to the requirements of agenda items under consideration.
Open meetings will be held in the Auditorium, Room L-002 at the Commission's headquarters building, 100 F Street, N.E., Washington, D.C. Visitors are welcome at all open meetings, insofar as space is available. Persons wishing to photograph or videotape Commission meetings must obtain permission in advance from the Secretary of the Commission. Persons wishing to tape record a Commission meeting should notify the Secretary's office 48 hours in advance of the meeting.
Any member of the public who requires auxiliary aids such as a sign language interpreter or material on tape to attend a public meeting should contact SECInterpreter@SEC.gov at least three business days in advance. For any other reasonable accommodation related disability contact DisabilityProgramOfficer or call 202-551-4158.
Open Meeting - Wednesday, August 25, 2010 - 10:00 a.m.
The subject matter of the Open Meeting will be:
Item 1: The Commission will consider whether to adopt changes to the federal proxy and other rules to facilitate director nominations by shareholders.
Closed Meeting - Thursday, August 26, 2010 - 2:00 p.m.
The subject matter of the Closed Meeting scheduled for Thursday, Aug. 26, 2010, will be: institution and settlement of injunctive actions; institution and settlement of administrative proceedings; and other matters relating to enforcement proceedings.
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.
In the Matter of Universal Ceramics, Inc.
An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in Universal Ceramics, Inc., Administrative Proceeding No. 3-13978. The Order Instituting Proceedings alleged that nine Respondents repeatedly failed to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission. The Default Order finds these allegations to be true as to all of the Respondents and revokes the registrations of each class of registered securities of Universal Ceramics, Inc., Universal Equity Partners, Inc., University Real Estate Fund 10, Ltd., University Real Estate Partnership V, Ursus Telecom Corp., US Diagnostic Inc., U.S. Mobile Services, Inc., USR Industries, Inc., and Utopia Trading, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-62741; File No. 3-13978)
Former Ernst & Young Partner and Former Stockbroker Settle SEC Insider Trading Charges
The Securities and Exchange Commission announced today that on Aug. 16, 2010, the Honorable P. Kevin Castel of the United States District Court for the Southern District of New York, entered final judgments against James E. Gansman and Donna B. Murdoch in SEC v. Gansman et al., 08-CV-4918, an insider trading case the Commission filed on May 29, 2008. The Commission charged Gansman, who was an attorney and partner in the Transaction Advisory Services group at Ernst & Young, with having tipped Murdoch, who was a stockbroker and close friend of Gansman, concerning the identities of at least seven different acquisition targets of Ernst & Young valuation services clients. The complaint further alleged that two of the seven acquisitions were tender offers; that Murdoch used Gansman's tips to trade in the securities of all seven of the acquisition targets; and that Murdoch also tipped her father, Gerald Brodsky, concerning one of the acquisitions and recommended trading in two of the acquisition targets to two other persons; and, finally, that all three persons then traded on Murdoch's communications.
To settle the Commission's charges, Gansman and Murdoch each consented, without admitting or denying the allegations in the Commission's complaint, to a separate final judgment that permanently enjoins each, respectively, from violating Exchange Act Sections 10(b) and 14(e) and Rules 10b-5 and 14e-3 thereunder. The final judgment to which Gansman consented further orders him to pay disgorgement of $233,385 together with $16,470 in prejudgment interest thereon, and $145 in post-judgment interest, but allows him one year from the entry of the final judgment to satisfy this payment obligation-with $200,000 due within ten days, and the remainder due within one year, of the entry of the final judgment. The final judgment to which Murdoch consented further orders that she is liable for disgorgement of $339,110 together with $64,943.52 in prejudgment interest thereon, but, based on her demonstrated inability to pay, waives payment of disgorgement and prejudgment interest and does not impose a civil penalty. Because a default judgment was previously entered against the sole other defendant in the Commission's case, Gerald Brodsky, the settlements announced today conclude this litigation. Additionally, Gansman and Murdoch each consented, in related administrative proceedings, to the entry of a Commission order that, in the case of Gansman, suspends him from appearing or practicing before the Commission as an attorney, and in the case of Murdoch, bars her from association with any broker or dealer.
Gansman and Murdoch were also each prosecuted criminally by the United States Attorney's Office for the Southern District of New York. In that parallel criminal prosecution, Gansman was convicted by a jury on May 15, 2009, following a two-week trial, on six felony counts of having tipped Murdoch; he was sentenced in Feb. 25, 2010 to a year-and-a-day in prison, six months probation, and a $600 special assessment, and is currently incarcerated. For her part, Murdoch pled guilty to seventeen counts of a superseding information on Dec. 23, 2008-including fifteen counts of securities fraud, one count of false statements, and one count of obstructing the Commission's investigation-and is awaiting sentencing.
The Commission acknowledges the assistance of the U.S. Attorney's Office for the Southern District of New York, the Federal Bureau of Investigation, the Financial Industry Regulatory Authority (FINRA), and the Options Regulatory Surveillance Authority (ORSA) in this matter.
The Commission's investigation of this matter is continuing. [SEC v. James E. Gansman, et al., Civil Action No. 08-CV-4918 (S.D.N.Y.) (PKC)] (LR-21629)
INVESTMENT COMPANY ACT RELEASES
Northern Funds, et al.
An order has been issued on an application filed by Northern Funds, et al. under Section 6(c) of the Investment Company Act for an exemption from Sections 18(f) and 21(b) of the Act, under Section 12(d)(1)(J) of the Act for an exemption from Section 12(d)(1) of the Act, under Sections 6(c) and 17(b) of the Act for an exemption from Sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Act, and under Section 17(d) of the Act and Rule 17d-1 under the Act to permit certain joint arrangements. The order permits certain registered open-end management investment companies to participate in a joint lending and borrowing facility. (Rel. IC-29381 - August 18)
Approval of Proposed Rule Changes
The Commission approved a proposed rule change (SR-NSCC-2010-05) filed by National Securities Clearing Corporation under Section 19(b)(1) of the Exchange Act to enhance the process for transfers through the Automated Customer Account Transfer Service. Publication is expected in the Federal Register during the week of August 23. (Rel. 34-62726)
The Commission approved a proposed rule change (SR-DTC-2010-09) filed by The Depository Trust Company under Section 19(b)(1) of the Exchange Act to revise its procedures regarding securities delivered to or from participant accounts through the Automated Customer Account Transfer Service of National Securities Clearing Corporation. Publication is expected in the Federal Register during the week of August 23. (Rel. 34-62727)
The Commission approved a proposed rule change by NYSE Arca (SR-NYSEArca-2010-64) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to the listing of the Wilshire Micro-Cap ETF. Publication is expected in the Federal Register during the week of August 23. (Rel. 34-62737)
Proposed Rule Change
The Commission issued a notice of filing of a proposed rule change by the Municipal Securities Rulemaking Board pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, to establish a subscription to the information collected by the MSRB's Short-term Obligation Rate Transparency (SHORT) System (SR-MSRB-2010-06). Publication is expected in the Federal Register during the week of August 23. (Rel. 34-62734)
Immediate Effectiveness of Proposed Rule Change
A proposed rule change filed by The Nasdaq Stock Market regarding routing to an affiliated exchange (SR-NASDAQ-2010-100) 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 August 23. (Rel. 34-62736)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS