SEC News Digest

COMMISSION ANNOUNCEMENTS

William P. Hicks Named Associate Regional Director for Enforcement in SEC Atlanta Regional Office

The Securities and Exchange Commission today announced that William P. Hicks has been named Associate Regional Director for Enforcement in the SEC's Atlanta Regional Office.

Mr. Hicks has held a number of positions of increasing responsibility since joining the SEC staff more than 25 years ago, most recently serving as Regional Trial Counsel in the Atlanta office. In his new position, Mr. Hicks will oversee the SEC's enforcement activities in five Southeastern states covered by the Atlanta office.

"Throughout his career with the SEC, Bill has been a strong and aggressive force in our efforts to hold accountable those who violate the nation's securities laws," said Robert Khuzami, Director of the SEC's Division of Enforcement. "We look forward to his continued leadership in such a key role."

Rhea Dignam, who has been named Director of the SEC's Atlanta Regional Office, said, "I am very pleased to have someone with Bill's extensive SEC experience as a member of the office's senior management team. I know that he will be a real asset as we carry out the enforcement responsibilities of the Atlanta Regional Office."

Mr. Hicks said, "It is a privilege to work with everyone in the Atlanta office to carry out the SEC's important mission, and I look forward to continuing to contribute to the Commission's dedicated efforts to protect investors."

Mr. Hicks previously worked in the SEC's Miami Regional Office as an enforcement staff attorney from 1984 to 1986 and as a Branch Chief from 1986 to 1989. He served as an Assistant Director in the Miami office from 1989 to 1992, and then relocated to the Atlanta office and became Regional Trial Counsel.

Prior to joining the Commission, Mr. Hicks was Assistant State Attorney with the Orange County (Fla.) State Attorney's Office from 1982 to 1984. He also served in various roles with the New York State Employees Retirement System from 1979 to 1982.

Mr. Hicks earned his Bachelor of Arts degree with a major in history from Dickinson College in 1975, and his JD from Brooklyn (N.Y.) Law School in 1978. (Press Rel. 2010-19)

Rhea Kemble Dignam Named Director of SEC Atlanta Regional Office

The Securities and Exchange Commission today announced that Rhea Kemble Dignam has been named Director of the SEC's Atlanta Regional Office.

Ms. Dignam joins the SEC from Ernst & Young LLP, where she served in a number of management positions from 2001 to 2009. She will oversee the Atlanta office's enforcement and examination activities in five states in the Southeast. Ms. Dignam succeeds Katherine (Kit) Addleman, who recently left the agency to return to private practice. Ms. Dignam will begin working at the SEC in March.

"Rhea brings a diverse legal background and extensive real-world expertise to her new position at the SEC," said SEC Chairman Mary L. Schapiro. "We are pleased that she will be joining our ongoing efforts to protect investors and ensure that firms are complying with the securities laws."

Robert Khuzami, Director of the SEC's Division of Enforcement, said, "The Enforcement Division is enormously fortunate that Rhea has agreed to lead our Atlanta Regional Office. The breadth and depth of her experience in law and finance, as well as her impressive leadership experience in complex organizations, will serve the investing public well."

Carlo di Florio, Director of the SEC's Office of Compliance Inspections and Examinations, said, "I know that Rhea will be an asset to the SEC's oversight of securities firms in the Atlanta region."

Ms. Dignam said, "I am honored and delighted to have been chosen as the SEC's Regional Director in Atlanta, and look forward to working with the talented and dedicated staff in carrying out the goals set by the Commission. Teaming with the SEC staff nationwide and colleagues in other federal, state and local agencies and at FINRA, the Atlanta Regional Office will continue to contribute significantly to the SEC's mission of protecting investors and the capital markets."

At Ernst & Young, Ms. Dignam served most recently as Principal and Americas Leader of Law Firm Services. In addition, she was part of the U.S. leadership team of the firm's Fraud Investigation & Dispute Services from 2001 to 2008, and played a key role in designing that unit's response to the Sarbanes-Oxley Act.

As Vice President and Deputy General Counsel at New York Life Insurance Company from 1993 to 2000, Ms. Dignam managed all litigation and alternative dispute resolution matters, chiefly in the areas of insurance and annuities, broker-dealer, investment management and advisory services, and employment.

Ms. Dignam was Executive Deputy Comptroller in the Office of the Comptroller in New York City from 1990 to 1993, and the Chief Assistant District Attorney in the Kings County District Attorney's Office in Brooklyn, N.Y., between 1988 and 1990. She served in several roles in the U.S. Attorney's Office in the Southern District of New York from 1976 to 1988, including Executive Assistant U.S. Attorney, Chief of the Public Corruption Unit, and Chief of the Narcotics Unit. Ms. Dignam began her legal career as an associate at the law firm of Davis Polk & Wardwell in 1976.

Ms. Dignam earned her Bachelor of Arts degree in political science in 1969 from Wellesley College, where she was Phi Beta Kappa, and her JD from Harvard Law School in 1972. (Press Rel. 2010-20)

Notice of Meeting of SEC Investor Advisory Committee

The Securities and Exchange Commission Investor Advisory Committee is providing notice that it will hold a public meeting on Monday, Feb. 22, 2010, in the Multipurpose Room, L-006, at the Commission's main offices, 100 F Street, NE, Washington, DC. The meeting will begin at 9:00 a.m. (EST) and will be open to the public. The Committee meeting will be webcast on the Commission's Web site at http://www.sec.gov. Persons needing special accommodations to take part because of a disability should notify a contact person listed below. The public is invited to submit written statements to the Committee.

The agenda for the meeting includes: (i) consideration of a Committee recusal policy; (ii) report from the Education Subcommittee, including a presentation on the National Financial Capability Survey; (iii) report from the Investor as Purchaser Subcommittee, including a discussion of fiduciary duty and mandatory arbitration; (iv) report from the Investor as Owner Subcommittee, including recommendations for the Committee on Regulation FD and proxy voting transparency, as well as reports on a work plan for environmental, social, and governance disclosure and on financial reform legislation; and (v) discussion of next steps and closing comments. (Rels. 33-9104; 34-61462; File No. 265-25-03)

RULES AND RELATED MATTERS

SEC Publishes Interpretive Guidance on Disclosure Related to Business or Legal Developments Regarding Climate Change

On Feb. 2, 2010, the Securities and Exchange Commission published interpretive guidance for public companies on existing SEC disclosure requirements as they apply to business or legal developments relating to the issue of climate change. The interpretive release provides guidance on certain existing disclosure rules that may require a company to disclose the impact that business or legal developments related to climate change may have on its business. The full text of the interpretive release is available on the SEC's Web site. (Rels. 33-9106; 34-61469)

Order Regarding Review of FASB Accounting Support Fee for 2010 Under Section 109 of the Sarbanes-Oxley Act of 2002

The Commission has determined that the 2010 annual accounting support fee for the Financial Accounting Standards Board (FASB) is consistent with Section 109 of the Sarbanes-Oxley Act of 2002 and that the FASB may act in accordance with this determination of the Commission. (Rels. 33-9105; 34-61468)

ENFORCEMENT PROCEEDINGS

In the Matter of Donald L. Marr

On Feb. 2, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (Order) against Donald L. Marr (Marr). The Order finds that on Jan. 21, 2010, the United States District Court for the Southern District of New York entered a final judgment against Marr permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rule 10b-5, in a matter entitled SEC v. Shehyn et al., 04-cv-02003 (LR-18624A).

Based on the above, the Order bars Marr from association with any broker or dealer. Marr consented to the issuance of the Order without admitting or denying any of the findings in the Oder. (Rel. 34-61472; File No. 3-13774)

In the Matter of American Sports Development Group, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in American Sports Development Group, Inc., Administrative Proceeding No. 3-13718. The Order Instituting Proceedings (OIP) alleged that nine Respondents failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission. The Default Order finds these allegations to be true. It revokes the registrations of each class of registered securities of American Sports Development Group, Inc., Antex Biologics, Inc. (n/k/a ABI Liquidating Corp.), Cybernet Internet Services International, Inc., Cyper Media, Inc., Frisby Technologies, Inc., Graphco Holdings Corp., Investors Insurance Group, Inc., ITC Learning Corp., and Speizman Industries, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-61475; File No. 3-13718)

SEC Files Settled Insider Trading Charges Against Connecticut Residents

The Securities and Exchange Commission today announced that on February 1, it filed a settled civil enforcement action in the United States District Court for the District of Connecticut, alleging that Defendants Bruce A. Macdonald of Wilton, Connecticut, and Robert A. Maresca of Bridgeport, Connecticut, engaged in insider trading in the common stock of Connecticut- based Memry Corporation prior to the announcement on June 24, 2008 that SAES Getters S.p.A., an Italian public company, would acquire Memry. In the complaint, Bruce K. Bohlander of Katonah, New York, was also named as a relief defendant. Macdonald, Maresca, and Bohlander have agreed to pay a total of nearly $88,000 in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties to settle the charges.

The Commission's complaint alleges that between July 13, 2007 and April 4, 2008, Macdonald, the husband of Memry's corporate secretary and vice president of human resources, purchased Memry securities in his own account and in the account of Bohlander while in possession of material, non-public information concerning the acquisition of Memry by SAES. The complaint alleges that Macdonald also tipped Maresca who purchased Memry securities on four occasions between March 7, 2008 and April 3, 2008. The complaint further alleges that Macdonald caused two other individuals to purchase Memry stock at various times between Sept. 26, 2007 and March 31, 2008. On June 24, 2008, after the acquisition was announced, Memry's stock price increased 64%, closing at $2.39 per share.

Under the terms of the proposed settlement, Macdonald and Maresca have consented, without admitting or denying the allegations of the Commission's complaint, to the entry of final judgments permanently enjoining them from violating the antifraud provisions of the Securities Exchange Act of 1934, specifically Section 10(b) and Rule 10b-5 thereunder. As part of the proposed settlement, Macdonald and Maresca also have agreed to pay disgorgement of $8,198 and $12,335, prejudgment interest of $591 and $845, and a civil penalty of $26,398 and $12,335 respectively. Bohlander has consented, without admitting or denying the allegations of the Commission's complaint, to the entry of a final judgment requiring him to pay disgorgement of $25,508 and prejudgment interest of $1,748.

The Commission acknowledges the assistance of the Financial Industry Regulatory Authority in this matter. [SEC v. Bruce A. Macdonald and Robert A. Maresca, Defendants, and Bruce K. Bohlander, Relief Defendant, United States District Court for the District of Connecticut, Civil Action No. 3:10cv151(WWE)] (LR-21404)

In the Matter of Trading in the Securities of Scopus Video Networks Ltd.

SEC Files Settled Insider Trading Charges Against Israeli Business Executive

The Securities and Exchange Commission filed a settled injunctive action in the United States District Court for the Southern District of New York, charging Joshua Levinberg, an executive of Israeli company Gilat Satellite Networks Ltd, with making nearly $190,000 in unlawful profits by engaging in insider trading in the common stock of Scopus Video Networks Ltd prior to the announcement that Scopus would be acquired by a third company.

The Commission's Complaint alleges that Levinberg learned in late 2008 that Scopus was going to be taken over when Gilat was approached by a Scopus officer and asked to submit a bid for Scopus. Through continuing contacts between the Scopus officer and Gilat, in which Levinberg was involved, Levinberg learned material, non-public information concerning the sale of Scopus.

According to the Commission's Complaint, Levinberg then began accumulating shares of Scopus. When Scopus publicly announced that agreement, on Dec. 23, 2008, its stock price jumped approximately 41 percent. The SEC's complaint alleges that Levinberg reaped an illicit profit of $187,996.48 on his stock purchases.

Levinberg, without admitting or denying the allegations in the Commission's complaint, has agreed to a permanent injunction from further violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. He has also agreed to pay a total of $383,463.36, comprising disgorgement of his trading profits, prejudgment interest and a civil penalty equal to his trading profits. The settlement is subject to the approval of the District Court. [SEC v. Joshua Z. Levinberg, United States District Court for the Southern District of New York, Civil Action No. Case No. 10-CV-777 (AKH) (S.D.N.Y.)] (LR-21405)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by The NASDAQ Stock Market describing the NASDAQ OUCH BBO Feed (SR-NASDAQ-2010-012) 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 February 8. (Rel. 34-61451)

A proposed rule change filed by NASDAQ OMX BX describing the BX OUCH BBO Feed (SR-BX-2010-010) 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 February 8. (Rel. 34-61452)

A proposed rule change (SR-Phlx-2010-12), filed by NASDAQ OMX PHLX to add seventy-five options classes to the Penny Pilot Program 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 February 8. (Rel. 34-61454)

A proposed rule change (SR-NASDAQ-2010-013), filed by NASDAQ Stock Market to add seventy-five options classes to the Penny Pilot Program 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 February 8. (Rel. 34-61455)

A proposed rule change (SR-BX-2010-011), filed by NASDAQ OMX BX to add 75 classes to the Penny Pilot Program 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 February 8. (Rel. 34-61456)

A proposed rule change (SR-ISE-2010-07) filed by the International Securities Exchange relating to foreign currency options 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 February 8. (Rel. 34-61459)

A proposed rule change filed by The NASDAQ Stock Market to modify fees for members using the NASDAQ Market Center (SR-NASDAQ-2010-020) 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 February 8. (Rel. 34-61467)

Proposed Rule Changes

The Commission issued notice of a proposed rule change submitted by the International Securities Exchange (SR-ISE-2010-02) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 related to cutoff time for contrary exercise advice submissions. Publication is expected in the Federal Register during the week of February 8. (Rel. 34-61458)

The NASDAQ Stock Market filed a proposed rule change (SR-NASDAQ-2010-006) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 to modify the press release requirements for listed companies. Publication is expected in the Federal Register during the week of February 8. (Rel. 34-61461)

The Chicago Board Options Exchange filed a proposed rule change, and Amendment No. 1 thereto, (SR-CBOE-2010-005) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder to establish strike price intervals and trading hours for options on Index-Linked Securities. Publication is expected in the Federal Register during the week of February 8. (Rel. 34-61466)

JOINT INDUSTRY PLANS

Notice of Filing of the Fifteenth Substantive Amendment to the Second Restatement of the Consolidated Tape Association Plan and Eleventh Substantive Amendment to the Restated Consolidated Quotation Plan

Pursuant to Rule 608 under the Securities Exchange Act of 1934, the Participants of the Consolidated Tape Association (CTA) Plan and Consolidated Quotation (CQ) Plan filed a proposal to amend the CTA Plan and CQ Plan (SR-CTA/CQ-2009-03) to provide that the Participants pay the Network B Administrator a fixed annual fee in exchange for its performance of Network B administrator functions under the CTA Plan and CQ Plan. Publication is expected in the Federal Register during the week of February 1. (Rel. 34-61457)

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