In the Matter of New York Broker Deutschland AG
On September 3, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registration of the class of the securities of New York Broker Deutschland AG for failure to make required periodic filings with the Commission.
In this Order, the Division of Enforcement alleges that the issuer is delinquent in its required periodic filings with the Commission.
In this proceeding, instituted pursuant to Securities Exchange Act of 1934 Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the Administrative Law Judge will hear evidence from the Division and the Respondent 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 or 13a-16 thereunder, are true. The Administrative Law Judge in the proceeding will then determine whether the registration pursuant to Exchange Act Section 12 of each class of the securities of Respondent 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. 34-60623; File No. 3-13611)
In the Matter of What's For Free Technologies, Inc., et al.
The registrations of the registered securities of What's For Free Technologies, Inc. (n/k/a Krifter Holdings, Inc.), Wherehouse Entertainment, Inc., Windpower Partners 1983-1, Windpower Partners 1984, World Financial Systems Co. Ltd., Wrap-N-Roll USA, Inc., and Wyrlis Corp. have been revoked. Each had repeatedly failed to file required annual and quarterly reports with the Securities and Exchange Commission. Thus, each 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 revocations were ordered in an administrative proceeding before an administrative law judge. (Rel. 34-60626; File No. 3-13576)
In the Matter of Louis J. Akers
On September 4, the Securities and Exchange Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions against Louis J. Akers. The Order finds that during the period January 2003 through November 2005, Akers was associated with Ferris Baker Watts, Inc. (Ferris), a broker-dealer and investment adviser registered with the Commission, as the firm's Vice Chairman, Private Client Group Director, and member of the Board of Directors.
The Order finds that from at least August 2002 through November 2005, Ferris registered representative Stephen Glantz (Glantz), David A. Dadante (Dadante), one of Glantz's customers, and a registered representative at another brokerage firm, all participated in a scheme to manipulate the market for the stock of Innotrac Corp. (Innotrac). The Order further finds that all three pled guilty to violations of Section 10(b) of the Securities Exchange Act of 1934 and in their plea agreements, they all admitted that they artificially inflated and maintained the price for Innotrac stock. The Order also finds that, acting in concert, Glantz, Dadante, and the other registered representative employed a variety of manipulative trading practices, including marking the closing price for Innotrac stock, engaging in matched and wash trades, and attempting to artificially create downbids to suppress short selling of Innotrac. The Order further finds that to perpetrate the manipulative scheme, and to generate income for himself, Glantz also engaged in unauthorized and unsuitable trading in Innotrac and certain other securities in the accounts of his customers.
The Order finds that Akers was one of the highest level supervisors for Ferris' retail brokers and had the requisite degree of responsibility, ability or authority at Ferris to affect the conduct of Glantz. The Order further finds that Akers failed to respond reasonably to red flags regarding Glantz's misconduct and lack of supervision, including those raised in a May 23, 2003 Ferris Compliance Department memorandum and a February 4, 2004 memorandum to Ferris' Credit Committee. The Order also finds that in 2005, Akers became Glantz's special supervisor. The Order finds that Akers did not fulfill his responsibilities as Glantz's special supervisor and thus did not discover Glantz's continuing fraud. The Order finds that as a result of this conduct, Akers failed reasonably to supervise Glantz with a view to detecting and preventing Glantz's 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.
Based on the above, the Order: (1) bars Akers from association in a supervisory capacity with any broker, dealer, or investment adviser with the right to reapply after one year; (2) orders Akers to pay disgorgement of $19,187 and prejudgment interest of $5,973, for a total of $25,160, to the United States Treasury; and (3) orders Akers to pay a civil money penalty in the amount of $75,000 to the United States Treasury. Akers consented to the issuance of the Order without admitting or denying any of the findings in the Order, except as to the Commission's jurisdiction over him and the subject matter of the proceedings, which he admitted. (Rels. 34-60628, IA-2923; File No. 3-13612)
Immediate Effectiveness of Proposed Rule Change
A proposed rule change filed by the New York Stock Exchange (SR-NYSE-2009-82) amending certain provisions of Exchange Rule 1600 on or through the New York Block Exchange 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 September 7. (Rel. 34-60618)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS