SEC Awarded LEED® Gold Environmental Certification
The Securities and Exchange Commission announced today that the child development center at its Washington, D.C., headquarters has been awarded a Gold-level Leadership in Energy and Environment Design (LEED®) designation by the U.S. Green Building Council (USGBC). The project achieved LEED Gold certification for energy use, lighting, water and material use, and incorporating a variety of other sustainable building strategies.
The Harbor at Station Place, an on-site child development center serving more than 80 children, was built at the SEC last year.
"To create a true learning environment for our future generation, we needed to do so by example," said Cathy English, the SEC's Assistant Director for Real Property and Facilities Support, who oversees SEC building projects. "The center was constructed using sustainable design criteria, more than 75 percent of the renovated building materials were reused, and remaining materials were primarily purchased from local businesses within a 500-mile radius to eliminate unnecessary fuel consumption and minimize pollution. This is an excellent way for us to demonstrate to our children that we can all be environmental stewards and provide eco-friendly surroundings."
This major recognition of the SEC's efforts is a fitting tribute to the vision of the former director of the SEC's Office of Administrative Services, Annie O'Donoghue, who placed a high priority on constructing the child care center in an environmentally conscious way. Ms. O'Donoghue passed away last year after a brave battle with Lou Gehrig's disease.
USGBC is a nonprofit organization of community leaders whose mission is to make green buildings available to everyone within a generation. Its membership includes corporations, builders, universities, government agencies, and other nonprofit organizations. Founded in 1993, the Council has grown to more than 13,000 member companies and organizations, a comprehensive family of LEED green building rating systems, an expansive educational offering, and a network of 72 local chapters, affiliates, and organizing groups.
"The Securities and Exchange Commission is to be commended for achieving LEED Gold certification. This facility is one that both the community and its customers can be proud of," said Rick Fedrizzi, President, CEO, Founding Chair of the U.S. Green Building Council. "The SEC will be a showcase for high-performance, energy-efficient, healthy office environments, and an inspiration for others."
The LEED (Leadership in Energy and Environmental Design) Green Building Rating System(TM) awards buildings points for satisfying specified green building criteria. The six major environmental categories of review include: Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, Indoor Environmental Quality and Innovation and Design. LEED green building certifications are awarded based on the total number of points earned within each category. LEED can be applied to all building types including new construction, commercial interiors, core and shell developments, existing buildings, homes, neighborhood developments, schools and retail facilities. (Press Rel. 2009-66)
Commission Revokes Registration of Securities of Lawrence Insurance Group, Inc. for Failure to Make Required Periodic Filings
On March 25, the Commission revoked the registration of each class of registered securities of Lawrence Insurance Group, Inc. (Lawrence Insurance) 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, Lawrence Insurance 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 Lawrence Insurance Group, 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 Lawrence Insurance's securities pursuant to Section 12(j) of the Exchange Act. This order settled the proceedings brought against Lawrence Insurance in In the Matter of Lambert Communications, Inc., et al., Administrative Proceeding File No. 3-13360.
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 Lawrence Insurance Group, Inc., et al., Administrative Proceeding File No. 3-13360, Exchange Act Release No. 59351, Feb. 3, 2009. (Rel. 34-59623; File No. 3-13360)
Delinquent Filers' Stock Registrations Revoked
The registration of the stock of JMXI, Inc. (f/k/a Jupiter Communications, Inc.), has been revoked. It had repeatedly failed, under both its current and former names, to file required annual and quarterly reports with the Securities and Exchange Commission. Thus, it 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 revocation was ordered in an administrative proceeding before an administrative law judge. (Rel. 34-59624; File No. 3-13368)
In the Matter of Lambert Communications, Inc., Laniprin Life Sciences, Inc., Last American Exit, Inc., Lawrence Insurance Group, Inc., Le Print Express International, Inc., Leak-X Environmental Corp., and Leisure Shoppers, Inc.
An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Six Respondents (Default Order) in Lambert Commc'ns, Inc., Administrative Proceeding No. 3-13360. The Order Instituting Proceedings alleged that Lambert Communications, Inc., Laniprin Life Sciences, Inc., Last American Exit, Inc., Lawrence Insurance Group, Inc., Le Print Express International, Inc., Leak-X Environmental Corp., and Leisure Shoppers, Inc., each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission.
The proceeding has ended as to Respondent Lawrence Insurance Group, Inc. Lambert Commc'ns, Inc., Exchange Act Release No. 59623 (Mar. 25, 2009).
The Default Order finds the allegations to be true as to the remaining six Respondents. It revokes the registrations of each class of registered securities of Lambert Communications, Inc., Laniprin Life Sciences, Inc., Last American Exit, Inc., Le Print Express International, Inc., Leak-X Environmental Corp., and Leisure Shoppers, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-59625; File No. 3-13360)
Federal Court Issues Preliminary Injunction Order Against John Donnelly, Tower Analysis, Inc., Nasco Tang Corp., and Nadia Capital Corp.
The United States Securities and Exchange Commission announced that on March 23, 2009, the Honorable Judge Glen E. Conrad, a federal judge in the Western District of Virginia, entered a preliminary injunction order, by consent, against John M. Donnelly, Tower Analysis, Inc., Nasco Tang Corp., and Nadia Capital Corp.
The preliminary injunction restrains Donnelly and the other defendants from violating certain antifraud provisions of the federal securities laws. Also by consent, Judge Conrad ordered that the defendants' and relief defendants' assets remain frozen until further notice, except for a carve-out to provide one relief defendant with reasonable living expenses. The preliminary injunction order continues the relief originally obtained on March 11, 2009, in response to the Commission's emergency civil injunctive action that sought a temporary restraining order, an order freezing assets, disgorgement and civil penalties, and other relief against Donnelly and the other defendants based on their alleged violations of the federal securities laws.
The Commission's complaint alleges that from at least 1998, Donnelly fraudulently obtained at least $11 million from as many as 31 investors through the sale of securities in the form of limited partnership interests in three investment funds. The SEC alleges that Donnelly orchestrated the scheme through three entities, Tower Analysis Inc., Nasco Tang Corp., and Nadia Capital Corp. The complaint alleges that Donnelly told investors that he would pool their funds to invest in, among other things, stock and bond index derivatives. According to the complaint, despite representations to investors that he had generated annual returns of as much as 22%, Donnelly has done almost no securities trading. The complaint alleges that instead of using investor funds to execute trades, Donnelly used investor funds to repay other investors, and paid himself approximately $1 million in salary and fees during the last three years alone. The complaint also alleges that Donnelly has been soliciting investors for a new fund called Nadia Capital Partners, LP based on misrepresentations about his past trading results.
The preliminary injunction enjoins Donnelly and the other defendants from violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The defendants consented to the preliminary injunction and continued assets freeze, without admitting or denying the SEC's allegations. [SEC v. John B. Donnelly, et al., Civil Action No. 03:09CV0015, United States District Court for the Western District of Virginia] (LR-20971)
SEC Obtains Emergency Relief Against a Chigago-Area Investment Adviser
The Securities and Exchange Commission announced today that on March 24, it obtained emergency relief against investment adviser The Nutmeg Group, LLC, and its principals Randall and David Goulding. In its complaint, filed March 23, the Commission alleges that Nutmeg, which controls and provides investment advice to 13 investment funds, and advises two additional investment funds, has misappropriated client assets, made misrepresentations to its clients, failed to comply with its custodial obligations and failed to keep required books and records.
Based on the Commission's allegations, the Honorable William J. Hibbler of the United States District Court for the Northern District of Illinois entered an order (TRO) temporarily enjoining Nutmeg from violating Sections 204, 206(1), 206(2), and 206(4) of the Investment Advisers Act (the Advisers Act) and Rules 204-2, 206(4)-2, and 206(4)-8 thereunder. The TRO also temporarily enjoins Randall Goulding from violating Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, aiding and abetting violations of Sections 206(1) and (2) and Section 206(4) of the Advisers Act and Rules 204-2, 204-2, 206(4)-2 and 206(4)-8 thereunder, and David Goulding from aiding and abetting violations of Sections 206(1) and (2) and 206(4) of the Advisers Act and Rules 206(4)-2, 206(4)-8 thereunder. Additionally, the TRO freezes Nutmeg's assets.
According to the complaint, Nutmeg and the Gouldings misappropriated over $4 million in client assets by transferring them to third parties. The complaint further alleges that Nutmeg did not fully document the Funds' investments, improperly commingled Fund assets, and cannot value the Funds' holdings. As a result, net asset and other investment values have been incorrectly reported to investors. Nutmeg has also failed to keep required books and records, and to keep assets with qualified custodians, which has further put client funds at risk, according to the Commission. Randall Goulding, of Deerfield, Illinois, was convicted in 1992 of a felony in connection with a tax evasion and money laundering scheme.
In addition to the emergency relief already obtained, the SEC is seeking preliminary and permanent injunctions and disgorgement against all defendants, and civil penalties against Nutmeg and Randall Goulding. The lawsuit also seeks disgorgement from relief defendants David Goulding, Inc., David Samuel, LLC, Financial Alchemy, LLC, Philly Financial, LLC, Samuel Wayne and Eric Irrgang. A hearing on whether a preliminary injunction should be issued against the defendants is scheduled for April 3, 2009 at 10:30 a.m. [SEC v. The Nutmeg Group, LLC, et al., No. 09CV1775 (N.D. Ill.)] (LR-20972)
SEC Sues Alexander, CJB Consulting Inc. and Regis Filia Holdings Inc. for Unregistered Sales of Securities of Thirteen Companies
On March 25, the Securities and Exchange Commission filed a civil complaint against Gerald P. Alexander, and two corporations that Alexander controls, all of Alpharetta, Georgia, alleging that they engaged in multiple unregistered stock distributions and acted as unregistered securities dealers.
According to the complaint, Alexander, CJB Consulting, Inc., and Regis Filia Holdings, Inc. purchased stock from thirteen issuers over a two year period and then sold the stock without registration statements having been in effect as to the sales. The complaint alleges defendants engaged in a scheme to evade the registration provisions, and acted as underwriters. The complaint further alleges that Alexander held himself out as an "investment banker" who could assist companies with raising capital, and that he carried out this business through CJB Consulting and Regis Filia Holdings.
Alexander, CJB Consulting, and Regis Filia Holdings are charged with violating the securities registration provisions of Sections 5(a) and (c) of the Securities Act, and Section 15(a)(1) of the Exchange Act, which prohibits dealers from engaging in the business of trading securities without being registered with the Commission. The Commission seeks permanent injunctions, an accounting of stock sales proceeds, disgorgement of ill-gotten gains, civil penalties, and penny stock bars against all defendants. [SEC v. Gerald P. Alexander, CJB Consulting, Inc., and Regis Filia Holdings, Inc., Civil Action No. 1:09-CV-0805 (N.D. Georgia)] (LR-20973)
INVESTMENT COMPANY ACT RELEASES
DFA Investment Dimensions Group Inc., et al.
An order has been issued on an application filed by DFA Investment Dimensions Group Inc., Dimensional Emerging Markets Value Fund Inc., Dimensional Investment Group Inc., The DFA Investment Trust Company and Dimensional Fund Advisors LP, under Section 12(d)(1)(J) of the Investment Company Act for an exemption from Sections 12(d)(1)(A) and (B) of the Act and under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act. The order permits certain management investment companies and unit investment trusts registered under the Act to acquire shares of certain open end management investment companies or unit investment trusts registered under the Act that are outside of the same group of investment companies as the acquiring investment companies. (Rel. IC-28654 - March 24)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by NYSE Alternext US extending the operative date of Rule 92(c)(3) from March 31, 2009, to July 31, 2009, (SR-NYSEALTR-2009-29) 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 March 30. (Rel. 34-59620)
A proposed rule change filed by the New York Stock Exchange extending the operative date of NYSE Rule 92(c)(3) from March 31, 2009 to July 31, 2009 (SR-NYSE-2009-30) 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 March 30. (Rel. 34-59621)
A proposed rule change filed by the Fixed Income Clearing Corporation (SR-FICC-2009-05) to make technical amendments to the rules of its Government Securities Division and Mortgage-Backed Securities Division to conform with the rules of the National Securities Clearing Corporation has become effective pursuant to Section 19(b)(3)(A)(iii) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of March 30. (Rel. 34-59622)
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