In the Matter of Christie A. Andersen
On Nov. 30, 2009, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 8A of the Securities Act of 1933, 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 (Order) against Christie A. Andersen. The Order finds that Christie Andersen failed reasonably to supervise with a view to preventing and detecting a registered representative's violations of the federal securities laws relating to the representative's recommendations and sales of variable annuities to senior citizen investors.
Based on the above, the Order suspends Christie Andersen from association in a supervisory capacity with any broker, dealer or investment adviser for a period of twelve months, and requires her to pay a $10,000 civil monetary penalty. Christie Andersen consented to the issuance of the Order without admitting or denying any of the findings of the Order. This Order resolves, as to Christie Andersen, the proceedings that were instituted on June 30, 2009. (Rel. 34-61079; IA-2957; File No. 3-13532)
Judgment of Permanent Injunction and Other Relief Entered Against Defendant Abner Alabre
The Commission announced that on Nov. 20, 2009, the Honorable Kenneth L. Ryskamp, United States District Court Judge for the Southern District of Florida, entered a judgment of permanent injunction and other relief against Abner Alabre. Alabre has consented to the entry of an injunction against future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to injunctive relief, the Judgment provides for disgorgement and the imposition of a civil penalty in amounts to be determined by the Court upon the Commission's motion.
Previously, the Commission filed a complaint against Alabre and others alleging that they ran a Ponzi scheme and affinity fraud that targeted Haitian-American investors residing primarily in South Florida. The Commission's complaint alleges that from April 2008 through December 2008, Defendants HomePals Investment Club, LLC and HomePals, LLC (together, HomePals), and their principals, Ronnie Eugene Bass, Jr., Alabre and Brian J. Taglieri, raised at least $14.3 million through the sale of unsecured notes to hundreds of Haitian-American investors by promising guaranteed returns of 100% every 90 days. The defendants claimed they were able to generate such spectacular returns through. Bass' purported successful trading of stock options and commodities. The Commission's complaint further alleges that, in reality, Bass traded no more than $1.2 million of the $14.3 million raised, generated trading losses of 19 percent, and that HomePals used the bulk of the investor funds to repay earlier investors in typical Ponzi scheme fashion. [SEC v. HomePals, LLC, HomePals Investment Club, LLC, Ronnie Eugene Bass, Jr., Abner Alabre and Brian J. Taglieri, Civil Action No. 09-CV-81524-Ryskamp/Vitunac (S.D. Fla.)] (LR-21316)
INVESTMENT COMPANY ACT RELEASES
Strategic Funds, Inc., et al.
A notice has been issued giving interested persons until Dec. 22, 2009 to request a hearing on an application filed by Strategic Funds, Inc., et al., for an order exempting applicants from Section 15(a) of the Investment Company Act and Rule 18f-2 under the Act. The order would permit the applicants to enter into and materially amend subadvisory agreements without shareholder approval and would grant relief from certain disclosure requirements. (Rel. IC-29064 - November 30)
Proposed Rule Change
The Commission noticed a proposed rule change (SR-CBOE-2009-089) submitted by the Chicago Board Options Exchange pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 related to stock-option orders. Publication is expected in the Federal Register during the week of November 30. (Rel. 34-61068)
Approval of Proposed Rule Change
The Commission granted approval of a proposed rule change (SR-NYSE-2009-89) as modified by Amendment No. 1 submitted by the New York Stock Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 to amend certain corporate governance requirements. Publication is expected in the Federal Register during the week of November 30. (Rel. 34-61067)
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