SEC News Digest

ENFORCEMENT PROCEEDINGS

In the Matter of vFinance Investments, Inc.

An Administrative Law Judge has issued an Initial Decision in vFinance Investments, Inc., Administrative Proceeding No. 3-12918. The Initial Decision finds that Respondent vFinance Investments, Inc. (vFinance), willfully violated Section 17(a)(1) of the Securities Exchange Act of 1934 (Exchange Act), and Rules 17a-4(b)(4) and 17a-4(j) thereunder. The Initial Decision also finds that Respondent Richard Campanella (Campanella) willfully aided and abetted and caused vFinance's statutory violations.

The Securities and Exchange Commission previously accepted a settlement offer from Respondent Nicholas Thompson (Thompson).

The Initial Decision concludes that Campanella unjustifiably delayed vFinance's response to a Commission request for documents. The Initial Decision further concludes Thompson failed to maintain proper books and records related to his trading activity in Lexington Resources, Inc. The Administrative Law Judge determined that vFinance is vicariously liable for Campanella's and Thompson's actions. In addition, the Initial Decision holds that Campanella's delay aided and abetted and caused vFinance's violations. The Initial Decision orders vFinance and Campanella to cease and desist from committing or causing future violations of the securities laws. The Initial Decision also censures Campanella. Finally, the Initial Decision imposes second-tier civil penalties on vFinance and Campanella, in the amount of $100,000 and $30,000, respectively. (Initial Decision No. 360; File No. 3-12918)

Commission Declares Final Initial Decision Requiring CTA to Recalculate Nasdaq New Entrant Fee

The Commission declared final an initial decision that set aside the new participant entry fee imposed by the Consolidated Tape Association (CTA) on The Nasdaq Stock Market, LLC (Nasdaq). Nasdaq had challenged the amount of the new entrant fee that it was charged for CTA admission.

The administrative law judge directed the CTA to recalculate Nasdaq's new entrant fee. The law judge concluded that direct labor costs associated with CTA software development and lease expenditures associated with development and expansion of the CTA system, as well as certain production and development costs, could appropriately be included in CTA's calculation of Nasdaq's new participant fee.

However, the law judge found that CTA improperly adjusted the Nasdaq new entrant fee for inflation using the increase in the Consumer Price Index. The law judge further held that the CTA should recalculate the new entrant fee for both the Nasdaq and the International Stock Exchange, which joined the CTA around the same time, as if each exchange were the eleventh participant to join the CTA. (Rel. 34-58912; File No. 3-12384)

In the Matter of Oil City Petroleum, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Four Respondents (Default Order) in Oil City Petroleum, Inc., Administrative Proceeding No. 3-13179. The Order Instituting Proceedings (OIP) alleged that Oil City Petroleum, Inc., Oil Retrieval Systems, Inc., OIS Optical Imaging Systems, Inc., and Oliver Transportation, Inc., each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission (Commission).

On October 3 and October 9, 2008, the Commission accepted Offers of Settlement from Respondents On Marine Service Co. and OnCourse Technologies, Inc.

The Default Order finds the allegations in the OIP to be true as to the remaining four Respondents. It revokes the registrations of each class of registered securities of Oil City Petroleum, Inc., Oil Retrieval Systems, Inc., OIS Optical Imaging Systems, Inc., and Oliver Transportation, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-58913; File No. 3-13179)

In the Matter of Nicole Industries, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Three Respondents (Default Order) in Nicole Industries, Inc., Administrative Proceeding No. 3-13191. The Order Instituting Proceedings (OIP) alleged that Nicole Industries, Inc., Outer Banks Investments, Inc., and Skyframes, Inc. (CIK No. 1097900), each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission (Commission).

On October 24 and October 27, 2008, the Commission accepted Offers of Settlement from Respondents Russian Athena, Inc., Skyframes Inc. (n/k/a Helsinki Scientific, Inc.)(CIK No. 919602), Sonoma Marine Technologies, Inc., and Point Arena Group, Inc.

The Default Order finds the allegations in the OIP to be true as to the remaining three Respondents. It revokes the registrations of each class of registered securities of Nicole Industries, Inc., Outer Banks Investments, Inc., and Skyframes, Inc. (CIK No. 1097900), pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-58914; File No. 3-13191)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by International Securities Exchange (SR-ISE-2008-81) relating to its cancellation fee 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 10. (Rel. 34-58898)

A proposed rule change filed by NYSE Arca amending Exchange Rule 6.39 - Securities Accounts of Market Makers (SR-NYSEArca-2008-116) 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 10. (Rel. 34-58899)

A proposed rule change (SR-NYSE-2008-105) filed by the New York Stock Exchange to shorten the time period for listed companies to issue a press release after receipt of notification that the company is noncompliant with the Exchange's price test 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 10. (Rel. 34-58900)

A proposed rule change filed by Chicago Board Options Exchange (SR-CBOE-2008-112) relating to temporary membership status and interim trading permit access fees 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 10. (Rel. 34-58902)

Proposed Rule Change

A notice of filing of proposed rule change (SR-FINRA-2008-054) filed by the Financial Industry Regulatory Authority to adopt FINRA Rule 5280 (Trading Ahead of Research Reports) in the Consolidated FINRA Rulebook had been filed with the Securities and Exchange Commission pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. Publication is expected in the Federal Register during the week of November 10. (Rel. 34-58905)

JOINT INDUSTRY PLAN RELEASES

Order Approving National Market System Plan

The Commission granted approval to the proposed National Market System Plan for the selection and reservation of securities symbols, submitted under Rule 608 of the Securities Exchange Act of 1934, by the Chicago Stock Exchange, The Nasdaq Stock Market, National Association of Securities Dealers (n/k/a Financial Industry Regulatory Authority, National Stock Exchange, and Philadelphia Stock Exchange. Publication is expected in the Federal Register during the week of November 10. (Rel. 34-58904)

SECURITIES ACT REGISTRATIONS

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