Securities and Exchange Commission Suspends Trading in the Securities of Six Issuers for Failure to Make Required Periodic Filings
The U.S. Securities and Exchange Commission announced the temporary suspension of trading in the securities of the following issuers, commencing at 9:30 a.m. EDT on Aug. 18, 2009, and terminating at 11:59 p.m. EDT on Aug. 31, 2009.
The Commission temporarily suspended trading in the securities of these six issuers due to a lack of current and accurate information about the companies because they have not filed periodic reports with the Commission in over two years. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).
The Commission cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by these companies.
Brokers and dealers should be alert to the fact that, pursuant to Exchange Act Rule 15c2-11, at the termination of the trading suspensions, no quotation may be entered relating to the securities of the subject companies unless and until the broker or dealer has strictly complied with all of the provisions of the rule. If any broker or dealer is uncertain as to what is required by the rule, it should refrain from entering quotations relating to the securities of these companies that have been subject to a trading suspension until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. Any broker or dealer with questions regarding the rule should contact the staff of the Securities and Exchange Commission in Washington, DC at (202) 551-5720. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.
If any broker, dealer or other person has any information which may relate to this matter, they should immediately communicate it to the Delinquent Filings Branch of the Division of Enforcement at (202) 551-5466, or by e-mail at DelinquentFilings@sec.gov. (Rel. 34-60516)
Change in the Meeting: Cancellation of Meeting
The Closed Meeting scheduled for Thursday, Aug. 20, 2009, at 2:00 p.m. has been cancelled.
For further information please contact the Office of the Secretary at (202) 551-5400.
Commission Orders Hearings on Registration Suspension or Revocation Against Six Companies for Failure to Make Required Periodic Filings
In conjunction with today's trading suspension, the Commission today also instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registration of each class of the securities of six companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the six issuers are delinquent in their required periodic filings with the Commission.
In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-60517; File No. 3-13582)
SEC Brings Emergency Action to Halt Ongoing Fraud Against Broker-Dealers
The Securities and Exchange Commission announced that on July 21, 2009, it filed an emergency enforcement action against Eric Todd Seiden to halt an ongoing scheme in which Seiden fraudulently induced at least fifteen broker-dealers to buy over $1.8 million worth of thinly traded stock. On Aug. 14, 2009, the Commission amended its complaint and added Kamal Abdallah as a second defendant.
The Commission's amended complaint, filed in the Eastern District of New York, alleges that on numerous occasions, Seiden, a former securities professional, telephoned broker-dealers, falsely identified himself as a customer or customer representative, and placed large orders to purchase a thinly traded stock for the customer's account. In each instance, Seiden had no authority to place orders for the customers. In many instances, Seiden's false representation caused the broker-dealers to execute the orders, which resulted in purchases totaling more than $1.8 million.
The amended complaint also alleges that Abdallah conspired with Seiden to manipulate the prices of penny stocks. Abdallah, the former CEO of Universal Property Development & Acquisition Corp. (UPDV), paid Seiden to create artificial demand for UPDV stock and inflate its stock price. Seiden and Abdallah worked in concert to manipulate the market price of UPDV stock, enabling Abdallah to dump his UPDV stock in the public market at an inflated price.
The Complaint charges Seiden with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Abdallah with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
On July 21, 2009, the Court issued a temporary restraining order. On July 30, 2009, the Court issued a preliminary injunction which, among other things, prohibits Seiden from further violations of the federal securities laws. The Commission seeks a final judgment enjoining Seiden and Abdallah from committing future violations of the foregoing federal securities laws and ordering them to disgorge ill-gotten gains plus prejudgment interest thereon and assessing civil penalties. The Commission also seeks a final judgment prohibiting Seiden and Abdallah from participating in any offering of penny stock and barring Abdallah from serving as an officer or director of a public company.
The amended complaint charges Seiden with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Abdallah with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder.
The Commission acknowledges the assistance of the United States Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation. [SEC v. Eric Todd Seiden and Kamal Abdallah, Civil Action No. CV 09-3116 (KAM) (EDNY)] (LR-21179)
Accelerated Approval of Proposed Rule Change
The Chicago Board Options Exchange filed Amendment No. 1 to a proposed rule change (SR-CBOE-2009-007) relating to tied hedge transactions and the Commission granted accelerated approval to the proposal as modified by Amendment No. 1. Publication is expected in the Federal Register during the week of August 17. (Rel. 34-60499)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change (SR-ISE-2009-62) filed by the International Securities Exchange to clarify certain Exchange rules 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 August 17. (Rel. 34-60500)
A proposed rule change filed by the Boston Stock Exchange to further extend the temporary cap on certain fees for members (SR-BX-2009-046) 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 August 17. (Rel. 34-60503)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS