Delinquent Filers' Stock Registrations Revoked
The registrations of the registered securities of Ministor Peripherals International Ltd., Modatech Systems, Inc., Modena 5, Inc., Modena 6, Inc., Monarch Media and Entertainment Group, Inc., The Murdock Group Career Satisfaction Corp. (n/k/a The Murdock Group Holding Corp.), Mustang.com, Inc., MycoBiotech Ltd., MyPlan USA, Inc., and MyTurn.com, Inc., have been revoked. Each had repeatedly failed to file required annual and quarterly reports with the Securities and Exchange Commission. 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. 34-63683; File No. 3-14156)
Commission Revokes Registration of Securities of Strathclair Ventures, Ltd. (n/k/a SilverCrest Mines, Inc.) for Failure to Make Required Periodic Filings
On January 10, the Commission revoked the registration of each class of registered securities of Strathclair Ventures, Ltd. (n/k/a SilverCrest Mines, Inc.) (SilverCrest Mines) 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, SilverCrest Mines 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 Strathclair Ventures, Ltd. (n/k/a SilverCrest Mines, Inc.) 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-16 thereunder and revoking the registration of each class of SilverCrest Mines' securities pursuant to Section 12(j) of the Exchange Act. This Order settled the proceedings brought against SilverCrest Mines in In the Matter of Springfield Co., Inc., et al., Administrative Proceeding File No. 3-14150.
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 . . . .
Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, In the Matter of Springfield Co., Inc., et al., Administrative Proceeding File No. 3-14150, Exchange Act Release No. 63429, December 3, 2010. (Rel. 34-63684; File No. 3-14150)
Initial Decision Censuring and Ordering That Diane M. Keefe Cease and Desist From Violations of Section 34(b) of the Investment Company Act is Final
The Commission has declared final the initial decision of an administrative law judge ordering Diane M. Keefe to cease and desist from committing or causing any violations or future violations of Section 34(b) of the Investment Company Act; and censuring Keefe.
The initial decision found that, Diane M. Keefe, while associated with an investment adviser as portfolio manager for an investment company (commonly known as a "mutual fund"), violated the antifraud provisions of the Investment Company Act of 1940 (Investment Company Act) by supplying, at the investment adviser's request, notes for inclusion in the investment company's files that falsely represented that meetings of an investment company occurred. (Rels. 34-63686; IA-3135; IC-29551; File No. 3-13337)
SEC Charges New York Hedge Fund Manager, Wall Street Professionals and Corporate Insiders in an Action Related to the Galleon Investigation
On Jan. 10, 2011, the Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of New York alleging that Robert Feinblatt - a co-founder and principal of New York-based hedge fund investment adviser Trivium Capital Management LLC - and Trivium analyst Jeffrey Yokuty engaged in insider trading in the securities of Polycom, Hilton, Google and Kronos. The complaint charges Trivium with insider trading as well. The SEC further alleges that Polycom senior executive Sunil Bhalla and Shammara Hussain, an employee at investor relations consulting firm Market Street Partners that did work for Google, tipped the inside information that enabled the insider trading by Feinblatt and Yokuty on behalf of Trivium's hedge funds for illicit profits of more than $15 million. The complaint filed today relates to pending enforcement actions, SEC v. Galleon Management, LP, et al., 09-CV-8811 (S.D.N.Y.) (JSR) and SEC v. Hardin, 10-CV-8600 (S.D.N.Y.) (JSR).
The SEC has now charged 27 defendants in its Galleon-related enforcement actions that have alleged widespread and repeated insider trading at numerous hedge funds including Galleon - a multi-billion dollar New York hedge fund complex founded and controlled by Raj Rajaratnam - and by other professional traders and corporate insiders in the securities of 14 companies generating illicit profits totaling approximately $69 million.
In the SEC's complaint filed earlier today in federal court in Manhattan, the SEC alleges that Feinblatt and Yokuty traded on behalf of Trivium in connection with two corporate takeovers and two quarterly earnings announcements based on material nonpublic information that Feinblatt and Yokuty allegedly received from Roomy Khan, an individual investor who had, herself, received such information from various sources.
The SEC's complaint alleges that Bhalla tipped Khan to inside information about Polycom's 2005 fourth quarter earnings, and that Khan traded on that information and tipped others. The tippees included Feinblatt and Yokuty, who traded on behalf of Trivium based on the information. Bhalla also tipped Khan with inside information about Polycom's 2006 first quarter earnings. Khan traded on the information and tipped Rajaratnam, who traded on behalf of Galleon based on the information. The SEC also alleges that Khan traded on and tipped Feinblatt and Yokuty among others with inside information that Khan received from a Moody's rating agency analyst about an impending takeover of Hilton by The Blackstone Group. Feinblatt and Yokuty then traded on behalf of Trivium based on the information.
The SEC further alleges that Hussain tipped Khan among others with inside information about Google's 2007 second quarter earnings. Khan traded on the information and also tipped Feinblatt and Yokuty, who traded on behalf of Trivium based on the information. The SEC also alleges that Khan traded on and tipped Feinblatt and Yokuty among others with inside information that she received about the impending acquisition of Kronos by Hellman & Friedman. Feinblatt and Yokuty then traded on behalf of Trivium based on the information.
The SEC's complaint charges the defendants with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, except for Bhalla, with violations of Section 17(a) of the Securities Act of 1933. The complaint seeks a final judgment permanently enjoining the defendants from future violations of the above provisions of the federal securities laws, ordering them to disgorge their ill-gotten gains plus prejudgment interest, and ordering them to pay financial penalties. The complaint also seeks to permanently prohibit Bhalla from acting as an officer or director of any registered public company.
In addition, since the Galleon-related cases were filed, the SEC has:
For further information, see Litigation Release Nos. 21255 (October 16, 2009), 21284 (November 5, 2009), 21397 (Jan. 29, 2010), 21493 (April 20, 2010), 21526 (May 17, 2010), 21732 (Nov. 8, 2010), and 21740 (Nov. 15, 2010). [SEC v. Robert Feinblatt, Jeffrey Yokuty, Trivium Capital Management LLC, Sunil Bhalla, and Shammara Hussain, Civil Action No. 11-CV-0170 (SDNY)] (LR-21802)
SECURITIES ACT REGISTRATIONS
Securities Act Registrations are not included in today's Digest.
RECENT 8K FILINGS
Recent 8-K reports are not included in today's Digest.