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ENFORCEMENT PROCEEDINGSIn the Matter of Total Film Group, Inc.An Administrative Law Judge issued an Order Making Findings and Revoking Registration of Securities of TransAxis, Inc., by Default in Total Film Group, Inc., Admin. Proc. 3-13474 (June 19, 2009) (Default Order). The Default Order finds that TransAxis, Inc., failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 13a-1 and 13a-13 by failing to file required periodic reports with the Securities and Exchange Commission. Based on these findings, the Default Order revokes the registration of each class of registered securities of TransAxis, Inc. (Rel. 34-60250; File No. 3-13474) SEC Announces Distribution of $123 Million to Doral Financial Investors Harmed by Accounting FraudThe Securities and Exchange Commission today announced that investors who were harmed by fraudulent accounting and disclosure practices at Doral Financial Corporation are receiving $123 million in cash to compensate them for their losses. These funds include $25 million recovered by the SEC in an action brought against Doral Financial and $8.5 million in a related action brought against First BanCorp. The SEC alleged that Doral Financial overstated income by approximately $921 million or 100 percent on a pre-tax, cumulative basis between 2000 and 2004 by improperly accounting for the purported sale of non-conforming mortgage loans and that First BanCorp aided and abetted Doral Financial's violations of the federal securities laws. The balance of the funds comprise payments made to settle related private litigation. The claims administrator is Gilardi & Co. P.O. Box 8090, San Rafael, CA 94912-8090. For additional information, see LR-19837 (Sept. 19, 2006); LR-20227 (Aug. 7, 2007); LR-20721 (Sept. 17, 2008). [SEC v. Doral Financial Corporation, Case No. 06-CIV-07158 (JES) (S.D.N.Y. filed September 19, 2006); Securities and Exchange Commission v. First BanCorp, Case No. 07-CIV-7039 (Crotty, J.) (S.D.N.Y.)] (LR-21117; AAE Rel. 3007) SEC Obtains Asset Freeze Against Provident Royalties, LLC, Paul R. Melbye, Brendan W. Coughlin, Henry D. Harrison and Affiliated Defendants and Relief DefendantsOn July 2, 2009, the Securities and Exchange Commission obtained a temporary restraining order and emergency asset freeze in a $485 million offering fraud and Ponzi scheme orchestrated by Paul R. Melbye, Brendan W. Coughlin and Henry D. Harrison through a company they owned and controlled, Provident Royalties LLC. In addition to the asset freeze, the court has appointed a receiver to preserve and marshal assets for the benefit of investors. The Commission alleges that from at least June 2006 through January 2009, Provident made a series of fraudulent offerings of preferred stock and limited partnership interests for the purpose of generating promised returns through investments in oil and gas assets. The complaint alleges the sales were made through 21 affiliated entities to more than 7,700 investors throughout the United States. It is also alleged that Provident Asset Management, LLC, an affiliated broker-dealer, made some direct retail sales of securities, but primarily solicited unaffiliated retail broker-dealers to enter into placement agreements for each offering, and those retail broker-dealers sold the stock to retail investors nationwide. According to the Commission's complaint filed in U.S. District Court for the Northern District of Texas, Provident falsely promised yearly returns of up to 18 percent and misrepresented to investors that 85 percent of the funds raised through the offerings would be used to purchase interests in oil and gas real estate, leases, mineral rights, and interests, exploration and development. The Commission alleges that, in fact, less than 50 percent of investor funds were used for their stated purpose, and the proceeds from later offerings were used to pay expenses related to earlier offerings and returns to investors in those offerings. The Commission's complaint charges the defendants with violations of 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 complaint seeks a temporary restraining order and preliminary and permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest and financial penalties. Officer and director bars are sought against Melbye, Harrison and Coughlin. Five affiliated entities that did not sell securities are named as relief defendants for purposes of disgorgement. [SEC v. Provident Royalties, LLC, Provident Asset Management, LLC, Provident Energy 1, LP, Provident Resources 1, LP, Provident Energy 2, LP, Provident Energy 3, LP, Shale Royalties II, Inc., Shale Royalties 3, LLC, Shale Royalties 4, Inc., Shale Royalties 5, Inc., Shale Royalties 6, Inc., Shale Royalties 7, Inc., Shale Royalties 8, Inc., Shale Royalties 9, Inc., Shale Royalties 10, Inc., Shale Royalties 12, Inc., Shale Royalties 14, Inc., Shale Royalties 15, Inc., Shale Royalties 16, Inc., Shale Royalties 17, Inc., Shale Royalties 18, Inc., Shale Royalties 19, Inc., Shale Royalties 20, Inc., Paul R. Melbye, Brendan W. Coughlin, and Henry D. Harrison, defendants and Shale Royalties 21, Inc., Shale Royalties 22, Inc., Provident Operating Company, LLC, Somerset Lease Holdings, Inc., and Somerset Development, Inc., Case No. 3-09CV1238-L (N.D. Texas)] (LR-21118) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2009-48) relating to the cancellation fee 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 July 6. (Rel. 34-60188) A proposed rule change (SR-NYSEArca-2009-57) filed by NYSE Arca amending Rule 6.9 - Exercise Limits 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 July 6. (Rel. 34-60200) A proposed rule change filed by BATS Exchange to amend BATS Rule 11.9, entitled "Orders and Modifiers," and BATS Rule 11.12, entitled "Priority of Orders," (SR-BATS-2009-020) 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 July 6. (Rel. 34-60204) A proposed rule change filed by the NYSE Arca (SR-NYSEArca-2009-60) amending its schedule of fees and charges for exchange services 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 July 6. (Rel. 34-60205) A proposed rule change filed by the International Securities Exchange relating to PrecISE fees (SR-ISE-2009-39) 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 July 6. (Rel. 34-60208) A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2009-55) relating to the extension of a pilot program related to a specialist fee credit for Linkage 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 July 6. (Rel. 34-60209) A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2009-53) relating to the extension of a pilot program relating to fees applicable to "P" and "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 July 6. (Rel. 34-60210) A proposed rule change filed by NASDAQ OMX PHLX. (SR-Phlx-2009-51) relating to the Extension of the Penny Pilot Program 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 July 6. (Rel. 34-60211) A proposed rule change filed by the NASDAQ Stock Market (SR-NASDAQ-2009-061) relating to the Extension of the Penny Pilot Program 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 July 6. (Rel. 34-60212) A proposed rule change filed by NASDAQ OMX BX (SR-BX-2009-032) to extend the Penny Pilot Program on the Boston Options Exchange Facility 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 July 6. (Rel. 34-60213) A proposed rule change (SR-BATS-2009-021) filed by BATS Exchange related to fees for use of BATS Exchange, Inc. 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 July 6. (Rel. 34-60214) A proposed rule change filed by the New York Stock Exchange (SR-NYSE-2009-59) amending Exchange Rules to allow customers to transmit orders on the Exchange with settlement instructions of "Cash," "Next Day," and "Seller's Option" directly to a Floor broker for manual execution 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 July 6. (Rel. 34-60216) A proposed rule change filed by NYSE Amex (NYSEAmex-2009-31) amending NYSE Amex Equities Rules to allow customers to transmit orders on the Exchange with settlement instructions of "Cash," "Next Day," and "Seller's Option" directly to a Floor broker for manual execution 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 July 6. (Rel. 34-60217) A proposed rule change filed by the NASDAQ Stock Market relating to NASDAQ Options Market options participant membership requirements, order entry times and confirmation statements (SR-NASDAQ-2009-064) 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 July 6. (Rel. 34-60220) A proposed rule change filed by NASDAQ OMX BX (SR-BX-2009-033) to amend the BOX Fee Schedule to remove three classes from the Liquidity Make or Take Pricing Structure 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 July 6. (Rel. 34-60221) A proposed rule change filed by International Securities Exchange (SR-ISE-2009-37) relating to an extension of the Penny Pilot Program 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 July 6. (Rel. 34-60222) A proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-2009-043) relating to the Penny Pilot Program 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 July 6. (Rel. 34-60223) A proposed rule change filed by NYSE Arca (SR-NYSEArca-2009-61) amending Rule 6.72 trading differentials 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 July 6. (Rel. 34-60224) A proposed rule change filed by NYSE Amex (SR-NYSEAmex-2009-35) amending Rule 960NY- Trading Differentials 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 July 6. (Rel. 34-60225) A proposed rule change (SR-ISE-2009-43) filed by the International Securities Exchange to modify Direct Edge ECN (DECN) fees applicable to DECN subscribers who are members of ISE 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 July 6. (Rel. 34-60232) Accelerated Approval of Proposed Rule ChangesThe Commission published notice of, and granted accelerated approval to, a proposed rule change (SR-NYSEAmex-2009-33) submitted by the NYSE Amex pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 amending the Linkage Fees portion of the Schedule of Fees and Charges for Exchange Services. Publication is expected in the Federal Register during the week of July 6. (Rel. 34-60226) The Commission noticed and granted accelerated approval to a proposed rule change (SR-ISE-2009-44) submitted under Rule 19b-4 of the Securities Exchange Act of 1934 by the International Securities Exchange that modifies certain fees that Direct Edge ECN passes through to non-ISE member subscribers of Direct Edge ECN. Publication is expected in the Federal Register during the week of July 6. (Rel. 34-60233) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2009/dig070709.htm
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