SEC News Digest

ENFORCMENT PROCEEDINGS

In the Matter of Stephen L. Hochberg, CPA

On June 30, the Commission announced the issuance of an Order Instituting Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions (Order) against Stephen L. Hochberg, CPA. The Order finds that on June 13, 2008, Hochberg, a resident of Sudbury, Massachusetts, pled guilty to eight counts of wire fraud in violation of Title 18 United States Code, Section 1343 and nine counts of fraud in connection with the purchase or sale of a security in violation of Title 15 United States Code, Sections 178j(b) and 78ff before the United States District Court for the District of Massachusetts, in United States v. Stephen L. Hochberg, 08-cr-10126-NMG. Further, the counts of the criminal information to which Hochberg pled guilty alleged, among other things, that between in or about no later than September, 2002 and continuing until in or about August, 2007, Hochberg defrauded various individuals, and obtained money and property by means of materially false and fraudulent pretenses. The counts of the criminal information to which Hochberg pled guilty also alleged that Hochberg engaged in acts, practices, and a course of business which operated as a fraud and deceit upon persons in connection with the purchase and sale of securities. The criminal information also alleged that Hochberg obtained not less than $1,691,500 from individual investors based upon representations that such funds would be used for legitimate investment purposes for the benefit of investors.

Based on the above, the Order bars Hochberg from association with any investment adviser. Hochberg consented to the issuance of the Order without admitting or denying any of the findings in the Order, except for the findings relating to his criminal conviction stated above, which he admits. (Rels. IA-2749; File No. 3-13085)

INVESTMENT COMPANY ACT RELEASES

Minnesota Life Insurance Company, et al.

A notice has been issued giving interested persons until July 21, 2008, to request a hearing on an application filed by Minnesota Life Insurance Company (Minnesota Life), Variable Annuity Account (Separate Account), and Securian Financial Services, Inc. (collectively, Applicants). Applicants seek an order pursuant to Section 6(c) of the Investment Company Act, exempting them from the provisions of Sections 2(a)(32) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder to the extent necessary to permit recapture of certain credit enhancements applied to cumulative net purchase payments that reach certain aggregate amounts in accordance with the formula described in the application, made under (i) new deferred variable annuity contracts and certificates, including data pages, riders and endorsements, described in the application (New Contracts) and under (ii) any deferred variable annuity contracts and certificates, including data pages, riders and endorsements, that Minnesota Life may issue in the future (Future Contracts) through the Separate Account and any other separate accounts of Minnesota Life and its successors in interest, provided that any such Future Contracts are substantially similar in all material respects to the New Contracts (New Contracts and Future Contracts referred to collectively as the "Contracts"). Applicants also request that the exemptive relief extend to any Financial Industry Regulatory Authority member broker-dealers controlling, controlled by, or under common control with any Applicant, whether existing or created in the future, that in the future, may act as principal underwriter for the Contracts. (Rel. IC-28321 - June 26)

SELF-REGULATORY ORGANIZATIONS

Proposed Rule Changes

The NASDAQ Stock Market filed a proposed rule change (SR-NASDAQ-2008-053) under Section 19(b)(1) of the Securities Exchange Act of 1934 to modify the definition of "Independent Director." Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58029)

The International Securities Exchange filed a proposed rule change (SR-ISE-2007-94) as modified by Amendments No. 1 and 3 thereto under Section 19(b)(1) of the Securities Exchange Act of 1934 to reduce certain order exposure times from three seconds to one second. Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58041)

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change (SR-NYSE-2008-49) filed by the New York Stock Exchange to extend for three months the moratorium related to the qualification and registration of registered Competitive Market Makers, pursuant to NYSE Rule 107A, and Competitive Traders, pursuant to NYSE Rule 110, 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 June 30. (Rel. 34-58033)

A proposed rule change filed by the New York Stock Exchange (SR-NYSE-2008-51) relating to Exchange Rule 103A (Specialist Stock Reallocation and Member Education and Performance) and Exchange Rule 103B (Specialist Stock Allocation) 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 June 30. (Rel. 34-58036)

A proposed rule change (SR-Amex-2008-50) filed by the American Stock Exchange to modify the minimum value size for an opening transaction in a currently-opened FLEX Equity series and to establish a pilot program that reduces the minimum number of contracts required for a FLEX Equity Option opening transaction in a new series 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 June 30. (Rel. 34-58037)

A proposed rule change (SR-ISE-2008-50) filed by the International Securities Exchange relating to the exposure of public customer orders to all ISE members has become effective under Section 19(b)(3)(A) under the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58038)

A proposed rule change filed by the Philadelphia Stock Exchange (SR-Phlx-2008-44) to extend the Quarterly Options Series Pilot Program until July 10, 2009 has become immediately 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 June 30. (Rel. 34-58039)

A proposed rule change (SR-NYSE-2008-50) filed by the New York Stock Exchange to amend NYSE Rule 104.10 to extend the duration of the pilot program applicable to Conditional Transactions in all securities to Sept. 30, 2008, 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 June 30. (Rel. 34-58040)

A proposed rule change filed by the Depository Trust Company (SR-DTC-2008-02) to clarify DTC’s Regular Custody Services procedures regarding the handling of non-negotiable securities that require additional legal documentation became effective upon filing with the Commission. Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58044)

A proposed rule change filed by the Philadelphia Stock Exchange relating to fees for options on the full-size Nasdaq 100 Index and options on the Mini Nasdaq 100 Index (SR-Phlx-2008-46) 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 June 30. (Rel. 34-58049)

The Commission issued notice of immediate effectiveness of a proposed rule change (SR-NYSE-2008-53) filed by the New York Stock Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 amending NYSE Rule 123D (Openings and Halts in Trading) to provide for a limited exemption for securities trading on the exchange that are part of the Russell Index reconstitution. Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58050)

Approval of Accelerated Delivery of Supplement to the Options Disclosure Document

The Commission granted approval to the accelerated delivery of a supplement to the options disclosure document submitted by the Options Clearing Corporation (SR-OCC-2008-02) pursuant to Rule 9b-1 under the Securities Exchange Act of 1934 regarding certain binary stock and index options, range options and delayed start options. Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58043)

Approval of Proposed Rule Change

The Commission approved a proposed rule change (SR-CBOE-2008-54) submitted by Chicago Board Options Exchange related to Sponsored Users. Publication is expected in the Federal Register during the week of June 30. (Rel. 34-58051)

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