SEC Charges New York-Based Fund Executives for Overvaluing Assets During Financial Crisis
The Securities and Exchange Commission today charged three top executives at a New York-based publicly-traded fund being regulated as a business development company (BDC) with overstating the fund’s assets during the financial crisis. The fund’s asset portfolio consisted primarily of corporate debt securities and investments in collateralized loan obligations (CLOs).
An SEC investigation found that KCAP Financial Inc. did not account for certain market-based activity in determining the fair value of its debt securities and certain CLOs. KCAP also failed to disclose that the fund had valued its two largest CLO investments at cost. KCAP’s chief executive officer Dayl W. Pearson and chief investment officer R. Jonathan Corless had primary responsibility for calculating the fair value of KCAP’s debt securities, while KCAP’s former chief financial officer Michael I. Wirth had primary responsibility for calculating the fair value of KCAP’s CLOs. Wirth, a certified public accountant, prepared the disclosures about KCAP’s methodologies to fair value its CLOs, and Pearson reviewed those disclosures.
The three executives agreed to pay financial penalties to settle the SEC’s charges.
“When market conditions change, funds and other entities must properly take into account those changed conditions in fair valuing their assets, said Antonia Chion, Associate Director in the SEC’s Division of Enforcement. “This is particularly important for BDCs like KCAP, whose entire business consists of the assets that it holds for investment.”
This is the SEC’s first enforcement action against a public company that failed to properly fair value its assets according to the applicable financial accounting standard – FAS 157 – which became effective for KCAP in the first quarter of 2008.
According to the SEC’s order instituting administrative proceedings against the fund and the three executives, KCAP did not record and report the fair value of its assets in accordance with Generally Accepted Accounting Principles (GAAP) and in particular FAS 157, which requires assets to be fair valued based on an “exit price” that reflects the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
The SEC’s order found that Pearson and Corless concluded that any trades of debt securities held by KCAP in the fourth quarter of 2008 reflected distressed transactions, and therefore KCAP determined the fair value of its debt securities based solely on an enterprise value methodology. However, this methodology did not calculate or inform KCAP investors of the FAS 157 “exit price” for that security. Wirth calculated the fair value of KCAP’s two largest CLO investments to be their cost, and did not take into account the market conditions during that period.
According to the SEC’s order, in May 2010, KCAP restated the fair values for certain debt securities and CLOs whose net asset values had been overstated by approximately 27 percent as of Dec. 31, 2008. Moreover, KCAP’s internal controls over financial reporting did not adequately take into account certain market inputs and other data.
“KCAP should have accounted for market conditions in the fourth quarter of 2008 in determining the fair values of its assets,” said Julie M. Riewe, Deputy Chief of the SEC Enforcement Division’s Asset Management Unit. “FAS 157 is critically important in fair valuing illiquid securities, and funds must consider market information in making FAS 157 fair value determinations and comply with their disclosed valuation methodologies.”
KCAP’s overvaluation and internal controls failures violated the reporting, books and records, and internal controls provisions of the federal securities laws, namely Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. Pearson, Corless, and Wirth caused KCAP’s violations and directly violated Exchange Act Rule 13b2-1 by causing KCAP’s books and records to be falsified. Pearson and Wirth also directly violated Exchange Act Rule 13a-14 by falsely certifying the adequacy of KCAP’s internal controls.
Pearson and Wirth each agreed to pay $50,000 penalties and Corless agreed to pay a $25,000 penalty to settle the SEC’s charges. KCAP and the three executives, without admitting or denying the findings, consented to the SEC’s order requiring them to cease and desist from committing or causing any violations or any future violations of these federal securities laws.
The SEC’s investigation was conducted by Adam Aderton of the Asset Management Unit, Noel Gittens, and Richard Haynes, and was supervised by Assistant Director Ricky Sachar. (Press Rel. 2012-242; Rel. 34-68307; AAE Rel. 3425; File No. 3-15109)
SEC Charges Oil Company CEO as Source in Insider Trading Case
The Securities and Exchange Commission today announced charges against the former CEO of a Denver-based oil-and-gas company at the center of an insider trading scheme that the SEC began prosecuting last month.
According to the SEC’s complaint, the insider trading occurred in advance of Delta Petroleum Corporation’s public announcement that Beverly Hills-based private investment firm Tracinda had agreed to purchase a 35 percent stake in the company, which shot its stock value up by nearly 20 percent. The SEC initially charged insurance executive Michael Van Gilder for his illegal trading in the case, and is now additionally charging his source: Delta’s then-CEO Roger Parker.
The SEC’s amended complaint alleges that Parker, who lives in Englewood, Colo., illegally tipped his close friend Van Gilder and at least one other friend with confidential information about Tracinda’s impending investment. Despite his duty as CEO to protect nonpublic information, Parker repeatedly communicated with Van Gilder following meetings and other developments as the deal progressed. Parker also illegally tipped information about Delta’s quarterly earnings. The insider trading in this case generated more than $890,000 in illicit profits.
“Parker was entrusted with highly confidential information, and he betrayed that trust to help line the pockets of his close friends,” said Sanjay Wadhwa, Deputy Chief of the SEC Enforcement Division’s Market Abuse Unit and Associate Director of the New York Regional Office. “Company officials who exploit their insider status must realize that they do so at the risk of inviting SEC scrutiny.”
According to the SEC’s amended complaint filed late yesterday in federal court in Denver, Parker tipped Van Gilder and another friend on several occasions in late November and December 2007 as the Tracinda investment was developing. Based on the inside information, Van Gilder and the other friend loaded up on Delta stock and highly speculative options contracts, and Van Gilder advised his relatives, his broker, and a co-worker to do the same.
The SEC alleges that the Tracinda announcement was not the only nonpublic information that Parker tipped to Van Gilder. In November 2007, Van Gilder received an e-mail from a mutual friend of Parker’s that included a news article expressing a negative view of Delta’s future prospects. After sending an e-mail to his broker indicating he might want to sell the Delta securities that he owned, Van Gilder called Parker three times that evening. Parker conveyed to Van Gilder confidential details about Delta’s third quarter 2007 earnings results that were to be announced later that week. Rather than sell his Delta stock, Van Gilder purchased an additional 1,250 shares and responded to the e-mail from the mutual friend by writing, “I had a dialogue with a friend, of whom you know. Do not sell this stock, rather buy more ... Delta will hit their numbers at this Thursday’s announcement.” When Delta announced its earnings, it reported production and revenue numbers above the company’s previously stated guidance.
The SEC’s amended complaint charges Parker and Van Gilder with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The amended complaint seeks a final judgment ordering them to disgorge their and their tippees’ ill-gotten gains plus prejudgment interest, ordering them to pay financial penalties, and permanently enjoining them from future violations of the above provisions of the federal securities laws. The SEC also seeks to prohibit Parker from acting as an officer or director of a public company.
The SEC’s investigation, which is continuing, has been conducted by members of the SEC’s Market Abuse Unit – Michael Holland and Joseph Sansone in New York and Jeffrey Oraker and Jay Scoggins in Denver – with substantial assistance from Neil Hendelman of the New York Regional Office. The SEC’s litigation is being handled by Thomas Krysa, who is Regional Trial Counsel in the Denver office, as well as Mr. Oraker and Mr. Holland.
The SEC thanks the U.S. Attorney offices in the Southern District of New York and the District of Colorado as well as the Federal Bureau of Investigation for their assistance in this matter. (Press Rel. 2012-243); [SEC v. Michael Van Gilder and Roger Parker, Civil Action 12-CV-2839 (D.Colo.) (JLK)] (LR-22547)
Commission Revokes Registration of Securities of Cayenne Entertainment, Inc. (f/k/a Boeing Run, Inc.) for Failure to Make Required Periodic Filings
On November 28, 2012, the Commission revoked the registration of each class of registered securities of Cayenne Entertainment, Inc. (f/k/a Boeing Run, Inc.) (Cayenne Entertainment) 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, Cayenne Entertainment 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 Cayenne Entertainment, Inc. (f/k/a Boeing Run, 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-13 thereunder and revoking the registration of each class of Cayenne Entertainment’s securities pursuant to Section 12(j) of the Exchange Act. This Order settled the proceedings brought against Cayenne Entertainment in In the Matter of Careside, Inc., et al., Administrative Proceeding File No. 3-15085.
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 Careside, Inc., et al., Administrative Proceeding File No. 3-15085, Exchange Act Release No. 68125, October 31, 2012. (Rel. 34-68304; File No. 3-15085)
In the Matter of KM Capital Management, LLC and Joshua A. Klein
An Administrative Law Judge (ALJ) has issued an Initial Decision as to KM Capital Management, LLC (KM Capital), and Joshua A. Klein (Klein) (collectively, Respondents) in Alchemy Ventures, Inc., Admin. Proc. File No. 3-14720. Previously, the ALJ issued an Order Making Findings and Imposing Sanctions by Default as to Respondents (Default Order). The Initial Decision makes the same findings as the Default Order; specifically, that from September 2009 to August 2010, Respondents violated Section 15(a) of the Securities Exchange Act of 1934 (Exchange Act) by acting as unregistered brokers. The Initial Decision orders Respondents to cease and desist from violating Section 15(a) of the Exchange Act; censures Respondents; orders Respondents to disgorge, jointly and severally, $102,802.58 plus prejudgment interest of $5,603.98 and post-judgment interest; and orders KM Capital to pay a civil penalty of $150,000 and Klein to pay a civil penalty of $50,000. (Initial Decision No. 473; File No. 3-14720)
Salient Advisors, L.P. and MarketShares ETF Trust
An order has been issued on an application filed by Salient Advisors, L.P. and MarketShares ETF Trust. The order permits: (a) series of certain actively managed open-end management investment companies to issue shares (Shares) redeemable in large aggregations only (Creation Units); (b) secondary market transactions in Shares to occur at negotiated market prices; (c) certain series to pay redemption proceeds, under certain circumstances, more than seven days after the tender of Shares for redemption; (d) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of Creation Units; and (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire Shares. (Rel. IC-30281 - November 27)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by NYSE Arca, Inc. amending NYSE Arca Options Rule 6.64 (OX Trading Auctions) with respect to opening trading in an options series (SR-NYSEArca-2012-126) 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 November 26. (Rel. 34-68290)
The Commission issued notice of filing and immediate effectiveness of a proposed rule change (SR-Phlx-2012-132) filed by NASDAQ OMX PHLX LLC pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to EEM options position limits. Publication is expected in the Federal Register during the week of November 26. (Rel. 34-68293)
A proposed rule change (SR-BOX-2012-019) filed by BOX Options Exchange LLC to Rule 7110 regarding Session Orders 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 November 26. (Rel. 34-68294)
ICE Clear Credit LLC (ICC) filed a proposed rule change (SR-ICC-2012-21) under Section 19(b)(1) of the Securities Exchange Act of 1934 to correct one term in the ICC Rules. Publication is expected in the Federal Register during the week of November 26. (Rel. 34-68300)
A proposed rule change filed by New York Stock Exchange LLC moving the rule text that provides for pegging on the Exchange from Supplementary Material .26 of NYSE Rule 70 to NYSE Rule 13 and amending such text to (i) permit Designated Market Maker Interest to be set as pegging interest; (ii) change references from National Best Bid, National Best Offer and National Best Bid or Offer to Best Protected Bid, Best Protected Offer and Best Protected Bid or Offer, respectively; (iii) permit pegging interest to peg to the opposite side of the market; and (iv) provide for an offset value to be specified for pegging interest (SR-NYSE-2012-65) 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 November 26. (Rel. 34-68302)
Accelerated Approval of Proposed Rule Change
The Commission granted accelerated approval of to proposed rule change (SR-CBOE-2012-111) filed by the Chicago Board Options Exchange, Incorporated to amend CBOE Rule 6.18 concerning the Exchange’s Disaster Recovery Facility. Publication is expected in the Federal Register during the week of November 26. (Rel. 34-68301)
Approval of Proposed Rule Change
The Commission has approved a proposed rule change (SR-BYX-2012-019) filed by BATS-Y Exchange, Inc. under Rule 19b-4 of the Exchange Act to adopt a Retail Price Improvement Program. Publication is expected in the Federal Register during the week of November 26. (Rel. 34-68303)
The following registration statements have been filed with the SEC under the Securities Act of 1933. The reported information appears as follows: Form, Name, Address and Phone Number (if available) of the issuer of the security; Title and the number and/or face amount of the securities being offered; Name of the managing underwriter or depositor (if applicable); File number and date filed; Assigned Branch; and a designation if the statement is a New Issue.
Registration statements may be viewed in person in the Commission's Public Reference Branch at 100 F Street, N.E., Washington, D.C. To obtain paper copies, please refer to information on the Commission's Web site at http://www.sec.gov/answers/publicdocs.htm. In most cases, you can view and download this information by using the search function located at http://www.sec.gov/edgar/searchedgar/companysearch.html.
S-1 ORION FINANCIAL GROUP Inc, 1739 CREEKSTONE CIRCLE, SAN JOSE, CA, 95133, 408 691 0806 - 40,000,000 ($4,000,000.00) Equity, (File 333-185146 - Nov. 27) (BR. 08) N-2 Eaton Vance Multi-Sector Income Trust, TWO INTERNATIONAL PLACE, BOSTON, MA, 02110, 800-225-6265 - 50,000 ($1,000,000.00) Equity, (File 333-185147 - Nov. 27) (BR. 16) F-10 Silver Wheaton Corp., PARK PLACE, SUITE 3150 - 666 BURRARD ST., VANCOUVER, A1, V6C 2X8, 604 684 3123 - 1 ($1.00) Other, (File 333-185152 - Nov. 27) (BR. 09A) F-3ASR Banco Santander, S.A., CIUDAD GRUPO SANTANDER, BOADILLA DEL MONTE, MADRID, U3, 28660, 34 91 289 32 80 - 0 ($0.00) Unallocated (Universal) Shelf, (File 333-185153 - Nov. 27) (BR. 12A) S-8 WASHINGTON FEDERAL INC, 425 PIKE STREET, SEATTLE, WA, 98101, 2066247930 - 5,000,000 ($81,550,000.00) Equity, (File 333-185154 - Nov. 27) (BR. 07C) S-1 TherapeuticsMD, Inc., 951 BROKEN SOUND PARKWAY NW, SUITE 320, BOCA RATON, FL, 33487, 561-961-1911 - 3,953,489 ($7,116,280.20) Equity, (File 333-185156 - Nov. 27) (BR. 01A) F-10 TRANSALTA CORP, 110 12TH AVE SW BOX 1900 STATION M, CALGARY ALBERTA T2P 2MI, CALGARY, A0, T2P2M1, 2128948400 - 0 ($2,000,000,000.00) Unallocated (Universal) Shelf, (File 333-185157 - Nov. 27) (BR. 02A) S-4 HD SUPPLY, INC., 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA, GA, 30339, 770-852-9000 - 0 ($2,925,000,000.00) Non-Convertible Debt, (File 333-185158 - Nov. 27) (BR. 02B) N-2 Brookfield Mortgage Opportunity Income Fund Inc., THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, NEW YORK, NY, 10281, 212-549-8408 - 0 ($1,000,000.00) Equity, (File 333-185159 - Nov. 27) (BR. 22) S-4 AIR LEASE CORP, 2000 AVENUE OF THE STARS, SUITE 1000-N, LOS ANGELES, CA, 90067, (310) 553-0555 - 0 ($500,000,000.00) Debt, (File 333-185160 - Nov. 27) (BR. 06B) S-4 TENET HEALTHCARE CORP, 1445 ROSS AVENUE, SUITE 1400, DALLAS, TX, 75202, 469-893-2701 - 0 ($300,000,000.00) Debt, (File 333-185161 - Nov. 27) (BR. 01B) S-3ASR TENET HEALTHCARE CORP, 1445 ROSS AVENUE, SUITE 1400, DALLAS, TX, 75202, 469-893-2701 - 0 ($0.00) Unallocated (Universal) Shelf, (File 333-185162 - Nov. 27) (BR. 01B) S-3ASR AMERISOURCEBERGEN CORP, 1300 MORRIS DRIVE, CHESTERBROOK, PA, 19087-5594, 6107277000 - 0 ($0.00) Debt, (File 333-185163 - Nov. 27) (BR. 09B) S-4 Momentive Performance Materials Inc., 22 CORPORATE WOODS BLVD, 2ND FLOOR, ALBANY, NY, 12211, 518-533-4703 - 0 ($250,000,000.00) Non-Convertible Debt, (File 333-185164 - Nov. 27) (BR. 06C)
Form 8-K is used by companies to file current reports on the following events:
8-K reports may be viewed in person in the Commission's Public Reference Branch at 100 F Street, N.E., Washington, D.C. To obtain paper copies, please refer to information on the Commission's Web site at http://www.sec.gov/answers/publicdocs.htm. In most cases, you can view and download this information by using the search function located at http://www.sec.gov/edgar/searchedgar/companysearch.html.
STATE NAME OF ISSUER CODE 8K ITEM NO. DATE COMMENT ----------------------------------------------------------------------------------------- Acadia Healthcare Company, Inc. DE 1.01,8.01,9.01 11/21/12 ACADIA PHARMACEUTICALS INC DE 8.01,9.01 11/27/12 ACNB CORP PA 5.02,9.01 11/20/12 ADT Corp DE 2.02,9.01 11/27/12 Aircastle LTD D0 7.01,9.01 11/27/12 Aircastle LTD D0 7.01,9.01 11/27/12 ALERE INC. DE 8.01,9.01 11/27/12 Allegiant Travel CO NV 1.01 11/21/12 ALLIANCE DATA SYSTEMS CORP DE 1.01,2.03,3.03,7.01, 11/20/12 9.01 ALLIANCE FINANCIAL CORP /NY/ NY 8.01,9.01 11/27/12 ALTERA CORP DE 5.03,9.01 11/21/12 Amarantus BioSciences, Inc. DE 5.03,8.01,9.01 11/26/12 Amarantus BioSciences, Inc. DE 8.01,9.01 11/27/12 AMERICAN EXPRESS CO NY 8.01,9.01 11/27/12 American Realty Capital Properties, I MD 7.01,9.01 11/27/12 American Realty Capital Trust, Inc. DE 7.01,9.01 11/27/12 AMERISOURCEBERGEN CORP DE 1.01,9.01 11/20/12 Amincor, Inc. NV 5.02 11/26/12 AMKOR TECHNOLOGY INC DE 1.01,2.03,9.01 11/23/12 ANALOG DEVICES INC MA 2.02,9.01 11/27/12 Apple REIT Eight, Inc. VA 2.02,9.01 11/26/12 Apple REIT Nine, Inc. VA 2.02,9.01 11/26/12 Apple REIT Seven, Inc. VA 2.02,9.01 11/26/12 APPLE REIT SIX INC 2.02,9.01 11/26/12 Apple REIT Ten, Inc. VA 2.02,9.01 11/26/12 Arlington Asset Investment Corp. VA 7.01,9.01 11/27/12 Arno Therapeutics, Inc DE 1.01,2.03,3.02,5.03, 11/21/12 5.07,9.01 ARRHYTHMIA RESEARCH TECHNOLOGY INC /D DE 2.02,9.01 11/21/12 ASB Bancorp Inc 8.01,9.01 11/20/12 ASHLAND INC. KY 5.02,9.01 11/27/12 Atlas Resource Partners, L.P. DE 1.01,8.01,9.01 11/20/12 B&G Foods, Inc. DE 2.04,9.01 11/27/12 BEAM INC DE 3.03,5.03,9.01 11/21/12 BERRY PLASTICS CORP DE 2.02,3.01 11/26/12 BERRY PLASTICS GROUP INC DE 2.02,9.01 11/26/12 BillMyParents, Inc. CO 1.01,3.02 11/20/12 BIOCRYST PHARMACEUTICALS INC DE 8.01 11/20/12 BIOLIFE SOLUTIONS INC DE 1.01 11/26/12 BIOTIME INC CA 8.01,9.01 11/22/12 BIOTIME INC CA 7.01,9.01 11/27/12 BlackRock Inc. DE 5.02,9.01 11/20/12 BreitBurn Energy Partners L.P. DE 1.01,3.02,7.01,9.01 11/21/12 BRIDGE BANCORP INC NY 8.01,9.01 11/27/12 BROOKS AUTOMATION INC DE 4.01,9.01 11/20/12 BROWN FORMAN CORP DE 7.01,9.01 11/27/12 BRT REALTY TRUST MA 9.01 10/04/12 AMEND CAPITAL ONE FINANCIAL CORP DE 7.01 11/27/12 CARPENTER TECHNOLOGY CORP DE 5.02,9.01 11/27/12 CENTURY NEXT FINANCIAL Corp LA 5.04,9.01 11/27/12 CHARTER COMMUNICATIONS, INC. /MO/ DE 8.01,9.01 11/20/12 China Growth Equity Investment Ltd E9 7.01,8.01,9.01 11/27/12 CIFC Corp. DE 5.02,9.01 11/20/12 CINCINNATI FINANCIAL CORP OH 7.01,9.01 11/27/12 CITIBANK CREDIT CARD ISSUANCE TRUST DE 8.01 11/26/12 CLICKER INC. NV 1.01,5.02,9.01 11/26/12 CNO Financial Group, Inc. DE 7.01,9.01 11/27/12 Colorado Gold Mines, Inc. 4.01,5.01,5.02 11/14/12 COMPUTER SCIENCES CORP NV 5.02 11/27/12 CONAGRA FOODS INC /DE/ DE 7.01,9.01 11/27/12 CORNING INC /NY NY 8.01,9.01 11/26/12 CUBIST PHARMACEUTICALS INC DE 1.01,2.03 11/20/12 CULP INC NC 2.02,9.01 11/27/12 DATAWATCH CORP DE 2.02,9.01 11/27/12 DCP Midstream Partners, LP DE 1.01,2.03,9.01 11/27/12 DDR CORP OH 8.01,9.01 11/19/12 DELUXE CORP MN 1.01,2.03,3.03,8.01, 11/26/12 9.01 Dewmar International BMC, Inc. NV 8.01,9.01 07/31/12 DLH Holdings Corp. NJ 1.01,5.02,9.01 11/20/12 DOUBLE EAGLE PETROLEUM CO MD 8.01,9.01 11/26/12 DRIVETIME AUTOMOTIVE GROUP INC DE 8.01 11/20/12 DYNEGY INC. DE 8.01,9.01 11/27/12 ENDOCYTE INC DE 7.01,9.01 11/27/12 ENERGY EDGE TECHNOLOGIES CORP. NJ 1.01,2.01,9.01 11/27/12 ENERGY KING, INC. 2.02,9.01 11/27/12 ENSURGE INC NV 3.02,9.01 11/26/12 ENTERCOM COMMUNICATIONS CORP PA 1.01 11/27/12 EOG RESOURCES INC DE 7.01 11/27/12 EZCORP INC DE 1.01,7.01,9.01 11/20/12 Federal Home Loan Bank of Atlanta X1 2.03 11/19/12 Federal Home Loan Bank of Chicago X1 2.03 11/21/12 Federal Home Loan Bank of Cincinnati X1 2.03,9.01 11/21/12 Federal Home Loan Bank of Indianapoli X1 2.03,9.01 11/27/12 Federal Home Loan Bank of New York X1 2.03,9.01 11/21/12 Federal Home Loan Bank of Pittsburgh PA 2.03,9.01 11/21/12 FEDERATED NATIONAL HOLDING CO FL 8.01,9.01 11/27/12 FIRST MARBLEHEAD CORP 8.01 11/27/12 FIRSTFED FINANCIAL CORP DE 8.01,9.01 11/20/12 FISHER COMMUNICATIONS INC WA 8.01 11/19/12 AMEND Flagstone Reinsurance Holdings, S.A. N4 5.02,8.01,9.01 11/27/12 FLEETCOR TECHNOLOGIES INC DE 1.01,9.01 11/26/12 FONU2 Inc. NV 1.01,4.02,5.03,9.01 10/22/12 AMEND FORRESTER RESEARCH INC DE 1.01,5.02 11/24/12 FS Bancorp, Inc. 7.01,9.01 11/27/12 GE Capital Credit Card Master Note Tr DE 1.01,9.01 11/27/12 Global Eagle Acquisition Corp. DE 7.01,8.01,9.01 11/27/12 Grand Canyon Education, Inc. DE 8.01,9.01 11/27/12 Graystone Co DE 8.01 11/27/12 GREEN MOUNTAIN COFFEE ROASTERS INC DE 2.02,9.01 11/27/12 GS Mortgage Securities Trust 2012-GCJ DE 9.01 11/27/12 Guidewire Software, Inc. DE 2.02 11/27/12 HAMPTON ROADS BANKSHARES INC VA 7.01,9.01 11/27/12 HARBINGER GROUP INC. DE 2.02,9.01 11/27/12 HAYNES INTERNATIONAL INC DE 5.02 11/20/12 HERITAGE BANKSHARES INC /VA VA 8.01,9.01 11/27/12 HERTZ CORP DE 2.01,7.01,8.01,9.01 11/19/12 HOMELAND ENERGY SOLUTIONS LLC 8.01,9.01 11/27/12 HomeTrust Bancshares, Inc. MD 5.04,9.01 11/27/12 HOPFED BANCORP INC DE 8.01 11/21/12 HPC POS SYSTEM, CORP. NV 4.02 11/26/12 IMMERSION CORP DE 8.01,9.01 11/26/12 Inland Diversified Real Estate Trust, MD 7.01,9.01 11/27/12 INTEGRATED BIOPHARMA INC DE 5.07 11/26/12 INVESTORS REAL ESTATE TRUST ND 5.04 11/27/12 ISLE OF CAPRI CASINOS INC DE 1.01,2.03,9.01 11/21/12 J2 GLOBAL, INC. DE 8.01,9.01 11/27/12 JAVA EXPRESS INC NV 8.01 11/12/12 JMP Group Inc. DE 7.01 11/27/12 JONES LANG LASALLE INC MD 5.02,9.01 11/27/12 KAT Racing, Inc. NV 1.01 11/05/12 KBS Strategic Opportunity REIT, Inc. MD 1.01,9.01 11/20/12 KEYW HOLDING CORP MD 1.01,2.03,9.01 11/20/12 KINDER MORGAN ENERGY PARTNERS L P DE 7.01 11/27/12 KINDER MORGAN MANAGEMENT LLC DE 7.01 11/27/12 KINDER MORGAN, INC. DE 7.01 11/27/12 KV PHARMACEUTICAL CO /DE/ DE 7.01,9.01 11/21/12 LEHMAN ABS CORP AT&T NOTE BACKED SERI DE 8.01,9.01 11/15/12 LEHMAN ABS CORP CNA FINANCIAL DEBENTU DE 8.01,9.01 11/15/12 LEHMAN ABS CORP SPRINT CAPITAL BACK S DE 8.01,9.01 11/15/12 Lightlake Therapeutics Inc. NV 5.02 11/27/12 LIONBRIDGE TECHNOLOGIES INC /DE/ DE 8.01,9.01 11/26/12 LNB BANCORP INC OH 7.01,9.01 11/27/12 LOCKHEED MARTIN CORP MD 5.02,9.01 11/20/12 Mandalay Digital Group, Inc. DE 9.01 09/13/12 AMEND MARINEMAX INC DE 5.02,9.01 11/20/12 MCMORAN EXPLORATION CO /DE/ DE 8.01,9.01 11/26/12 MEADOWBROOK INSURANCE GROUP INC MI 7.01,9.01 11/27/12 Mindesta Inc. DE 8.01,9.01 11/27/12 MONMOUTH REAL ESTATE INVESTMENT CORP MD 8.01,9.01 11/27/12 MONROE CAPITAL Corp MD 7.01,9.01 11/27/12 MUNICIPAL MORTGAGE & EQUITY LLC DE 1.01,5.02,9.01 11/20/12 MURPHY OIL CORP /DE DE 8.01,9.01 11/27/12 National Bank Holdings Corp DE 7.01,9.01 11/26/12 NATIONAL FUEL GAS CO NJ 7.01,9.01 11/27/12 Nationstar Mortgage Holdings Inc. DE 7.01,9.01 11/27/12 Neiman Marcus, Inc. DE 2.02,9.01 11/27/12 NEWELL RUBBERMAID INC DE 2.02,7.01,9.01 11/27/12 NEXSTAR BROADCASTING GROUP INC DE 8.01,9.01 11/26/12 Niska Gas Storage Partners LLC DE 7.01,9.01 11/27/12 NORTH BAY RESOURCES INC DE 1.01,2.03,3.02,9.01 11/05/12 NUPATHE INC. DE 1.01,9.01 11/26/12 OCEANFIRST FINANCIAL CORP DE 8.01,9.01 11/27/12 OHIO VALLEY BANC CORP OH 8.01 11/27/12 Orgenesis Inc. NV 1.01,9.01 11/14/12 ORIGINOIL INC NV 1.01,8.01,9.01 11/27/12 PARK CITY GROUP INC 8.01,9.01 11/26/12 PATHEON INC 8.01,9.01 11/26/12 PEDEVCO CORP TX 1.01,3.02,9.01 11/20/12 PENTAIR LTD V8 7.01,9.01 11/27/12 PITNEY BOWES INC /DE/ DE 8.01,9.01 11/27/12 PMI GROUP INC DE 7.01,9.01 11/27/12 Post Holdings, Inc. MO 7.01,9.01 11/27/12 PREMIER FINANCIAL BANCORP INC KY 7.01,9.01 11/27/12 Preventia, Inc. 4.01,9.01 10/22/12 PRICESMART INC DE 8.01,9.01 11/27/12 PRINCIPAL FINANCIAL GROUP INC DE 7.01,9.01 11/27/12 ProPhase Labs, Inc. NV 1.01,9.01 11/26/12 PROVIDENT NEW YORK BANCORP DE 5.02,9.01 11/27/12 Public Storage MD 8.01,9.01 11/26/12 PVH CORP. /DE/ DE 2.02,9.01 11/27/12 RALCORP HOLDINGS INC /MO MO 2.02,8.01,9.01 11/27/12 Redwood Mortgage Investors IX DE 9.01 06/30/12 RENAISSANCERE HOLDINGS LTD D0 2.04,8.01,9.01 11/27/12 Resolute Forest Products Inc. DE 2.05,2.06,9.01 11/20/12 REX ENERGY CORP DE 7.01,8.01,9.01 11/27/12 REXAHN PHARMACEUTICALS, INC. DE 1.01,8.01,9.01 11/27/12 RLJ Lodging Trust MD 1.01,2.03,9.01 11/20/12 ROBBINS & MYERS, INC. OH 5.08,8.01,9.01 11/27/12 ROCHESTER MEDICAL CORPORATION MN 7.01,9.01 11/27/12 S&W Seed Co NV 9.01 10/01/12 AMEND SafeStitch Medical, Inc. DE 1.01,2.03,9.01 11/20/12 SCHIFF NUTRITION INTERNATIONAL, INC. DE 5.02,9.01 11/27/12 SCHNITZER STEEL INDUSTRIES INC OR 7.01,9.01 11/27/12 SecureAlert, Inc. UT 5.02 11/21/12 SED INTERNATIONAL HOLDINGS INC 2Q 5.02 11/27/12 SERVOTRONICS INC /DE/ DE 5.02 11/21/12 SHAW GROUP INC LA 7.01,8.01 11/27/12 Shire plc 8.01,9.01 11/27/12 Silver Dragon Resources Inc. DE 4.02,9.01 11/27/12 SIMMONS FIRST NATIONAL CORP AR 2.01,9.01 09/14/12 AMEND Six Flags Entertainment Corp 8.01 11/27/12 SL INDUSTRIES INC NJ 5.02,8.01,9.01 11/26/12 Smart Ventures Inc. 5.02,9.01 08/26/12 Snap Interactive, Inc DE 7.01 11/27/12 Southern Hospitality Development Corp CO 4.01 11/13/12 AMEND SRA INTERNATIONAL, INC. VA 5.02,9.01 11/26/12 STAAR SURGICAL CO DE 7.01 11/27/12 STATE INVESTORS BANCORP, INC. 8.01,9.01 11/27/12 STRUCTURED OBLIGATIONS CORP LONG TERM DE 8.01,9.01 11/15/12 STRUCTURED OBLIGATIONS CORP LONG TERM DE 8.01,9.01 11/15/12 STRUCTURED OBLIGATIONS CORP LONG TERM DE 8.01,9.01 11/15/12 STRUCTURED OBLIGATIONS CORP SELECT NO DE 8.01,9.01 11/15/12 STRUCTURED OBLIGATIONS CORP SELECT NO DE 8.01,9.01 11/15/12 Sucampo Pharmaceuticals, Inc. 7.01,8.01 11/21/12 SUPERCONDUCTOR TECHNOLOGIES INC DE 1.01,1.02,9.01 11/26/12 TAYLOR CALVIN B BANKSHARES INC MD 5.02 11/26/12 TC PIPELINES LP DE 7.01,9.01 11/27/12 TEL INSTRUMENT ELECTRONICS CORP NJ 2.02,9.01 11/26/12 TELEPHONE & DATA SYSTEMS INC /DE/ DE 1.01,8.01,9.01 11/26/12 THERAVANCE INC DE 7.01 11/27/12 THOR INDUSTRIES INC DE 2.02,9.01 11/26/12 TIDEWATER INC DE 8.01,9.01 11/26/12 Tower Group, Inc. DE 7.01 11/27/12 Tower Group, Inc. DE 2.02,9.01 11/07/12 TRANSAX INTERNATIONAL LTD CO 5.07,9.01 11/20/12 Transcept Pharmaceuticals Inc DE 8.01,9.01 11/26/12 TRUSTCO BANK CORP N Y NY 5.02,8.01,9.01 11/20/12 TSIC, Inc. DE 7.01,9.01 11/19/12 UNIGENE LABORATORIES INC DE 8.01,9.01 11/27/12 UNIGENE LABORATORIES INC DE 2.04,4.02 11/21/12 UNIVERSAL TECHNICAL INSTITUTE INC DE 2.02,9.01 11/27/12 UNIVERSITY GENERAL HEALTH SYSTEM, INC NV 9.01 11/27/12 UROLOGIX INC MN 5.02,9.01 11/20/12 VALENCE TECHNOLOGY INC DE 5.02 11/26/12 VelaTel Global Communications, Inc. NV 1.01,5.02,8.01,9.01 11/27/12 Vertex Energy Inc. NV 9.01 09/11/12 AMEND VICTORY ENERGY CORP NV 5.02,9.01 11/27/12 VSUS TECHNOLOGIES INC DE 1.01,3.03,5.02 11/26/12 WALTER INVESTMENT MANAGEMENT CORP MD 1.01,8.01,9.01 11/20/12 Western Union CO DE 5.02 11/20/12 Zalicus Inc. DE 8.01,9.01 11/27/12 ZAP CA 8.01 11/26/12 ZIONS BANCORPORATION /UT/ UT 7.01,9.01 11/26/12 AMEND