Closed Meeting - Thursday, April 10, 2008 - 2:00 p.m.
The subject matter of the closed meeting scheduled for April 10, 2008, will be: formal orders of investigation; institution and settlement of injunctive actions; institution and settlement of administrative proceedings of an enforcement nature; regulatory matters regarding financial institutions; resolution of litigation claims; and an adjudicatory matter.
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.
John Luczycki, CPA Reinstated to Appear and Practice Before the Commission as an Accountant Responsible for the Preparation or Review of Financial Statements Required to be filed with the Commission
Pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice, John Luczycki, CPA has applied for and been granted reinstatement of his privilege to appear and practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission. Mr. Luczycki was suspended from appearing or practicing before the Commission on April 14, 2004. His reinstatement is effective immediately. (Rel. 34-57612; AAE Rel. 2806; File No. 3-11457)
Jury Finds Broker Liable for Fraud
On April 3, the Commission obtained a jury verdict against stock promoter Cort L. Poyner of Pompano Beach, Fla., in a case entitled Securities and Exchange Commission v. The Children's Internet, et al., Case No. C-06-6003-CW. In its Complaint, the Commission had alleged that Poyner defrauded investors in a California start-up company called The Children's Internet, falsely stating that the company's stock would be listed on a national stock exchange shortly and failing to disclose that he was receiving a 25% commission for selling the stock.
The Commission charged Poyner with fraud (violation of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Section 17(a)(1) of the Securities Act of 1933 (Securities Act)); engaging in the sale of unregistered securities (violation of Section 5 of the Securities Act); and acting as an unregistered securities broker (violation of Section 15(a)(1) of the Exchange Act). Following a three-day jury trial in Oakland, Calif., the jury found Poyner liable on all counts.
The Court has directed the Commission to file papers by April 25, 2008, supporting its request for equitable and monetary relief against Poyner. The Commission anticipates seeking an order from the Court permanently enjoining Poyner from further violations, directing Poyner to disgorge his ill-gotten gains, imposing civil monetary penalties, and prohibiting Poyner from engaging in penny stock transactions.
For more information see LR-19849. [SEC v. The Children's Internet, Inc., Nasser V. Hamedani, Sholeh A. Hamedani, Peter A. Perez, Cort L. Poyner and Two Dog Net, Inc. Case No. C 06-6003 CW (N.D.Cal.] (LR-20517)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change (SR-NYSE-2008-22) filed by the New York Stock Exchange to extend the moratorium on the qualification and registration of new Registered Competitive Market Makers and new Competitive Traders, governed by NYSE Rules 107A and 110, respectively, for an additional three months 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 7. (Rel. 34-57601)
A proposed rule change (SR-Amex-2008-27) filed by the American Stock Exchange relating to extend the pilot program for the allocation and performance evaluation procedures for securities admitted to dealings on an unlisted basis has become immediately 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 April 7. (Rel. 34-57604)
A proposed rule change (SR-Phlx-2008-22), and Amendment No. 1 thereto, filed by the Philadelphia Stock Exchange relating to floor broker charge and specialist unit credit in connection with Linkage P/A 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 April 7. (Rel. 34-57608)
Proposed Rule Change
The Commission issued notice of filing of a proposed rule change (SR-NYSEArca-2007-104) and Amendment No. 1 thereto filed by NYSE Arca, through its wholly owned subsidiary, NYSE Arca Equities, Inc., pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to listing standards for Warrants, Rights, and Units. Publication is expected in the Federal Register during the week of April 7. (Rel. 34-57603)
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