Following is a schedule of Commission meetings, which will be conducted under provisions of the Government in the Sunshine Act. Meetings will be scheduled according to the requirements of agenda items under consideration.
Open meetings will be held in the Auditorium, Room L-002 at the Commission's headquarters building, 100 F Street, N.E., Washington, D.C. Visitors are welcome at all open meetings, insofar as space is available. Persons wishing to photograph or videotape Commission meetings must obtain permission in advance from the Secretary of the Commission. Persons wishing to tape record a Commission meeting should notify the Secretary's office 48 hours in advance of the meeting.
Any member of the public who requires auxiliary aids such as a sign language interpreter or material on tape to attend a public meeting should contact SECInterpreter@SEC.gov at least three business days in advance. For any other reasonable accommodation related disability contact DisabilityProgramOfficer or call 202-551-4158.
Open Meeting on Wednesday, April 7, 2010 at 10:00 a.m.
The subject matter of the Open Meeting will be:
Item 1: The Commission will consider whether to propose revisions to Regulation AB and other rules regarding the offering process, disclosure and reporting for asset-backed securities. The proposed amendments would revise the shelf offering process and eligibility criteria for asset-backed securities and require asset-backed issuers to provide enhanced disclosures including information regarding each asset in the underlying pool in a standardized, tagged format. The Commission will also consider proposed revisions to Securities Act Rule 144A and other rules for privately-placed asset-backed securities.
At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.
In the Matter of Peter C. Dunne
On March 31, 2010, the Commission issued an Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934, (Order) against Peter C. Dunne. The Order finds that Dunne was a registered representative associated with Aura Financial Services, Inc. (Aura), a broker-dealer registered with the Commission, from March 2008 through August 2008. Additionally, the Order finds that on Sept. 15, 2009, a final judgment was entered against Dunne, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled SEC v. Aura Financial Services, Inc., et al., Civil Action Number 09-CIV-21592, in the United States District Court for the Southern District of Florida. The complaint in that civil action alleged that from April 2008 through August 2008, Dunne "churned" the accounts of Aura clients by engaging in excessive trading to generate commissions for himself rather than in the clients' interests.
Based on the above, the Order bars Dunne from association with any broker or dealer, with the right to reapply for association after five (5) years to the appropriate self-regulatory organization, or if there is none, to the Commission. Dunne consented without admitting or denying the findings in the Order, except for the entry of the injunction, which he admitted. (Rel. 34-61804; File No. 3-13646)
In the Matter of James H. Park
On March 31, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act), Making Findings and Imposing Remedial Sanctions (Order) against James H. Park (Park). The Order finds that on March 15, 2010, a final judgment was entered by consent against Park enjoining him from violating Sections 5(a), 5(c) and 17(a)(1)-(3) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. James H. Park, Case No. 6:09-CV-1137-Orl-19GJK, in the United States District Court for the Middle District of Florida. The Commission's complaint in that action alleged that from at least March 2006 to December 2007, Park participated in a fraudulent, unregistered offering to more than 10,000 investors nationwide of securities in the form of "Associate" memberships in Wealth Pools.
Based on the above, the Order bars Park from association with any broker or dealer. Park consented to the issuance of the Order without admitting or denying any of the findings in the Order, except he admitted the entry of the injunction. (Rel. 34-61816; File No. 3-13839)
District Court Enters Final Judgments Ordering Defendant George L. Theodule to Pay Over $5 Million in Disgorgement With Prejudgment Interest and a Civil Penalty, and Permanently Enjoining His Two Companies From Violations of the Antifraud Provisions of the Federal Securities Laws
The Commission announced that on March 26, 2010, the United States District Court for the Southern District of Florida entered a Final Judgment of Disgorgement, Prejudgment Interest and Civil Penalty against Defendant George L. Theodule. The Final Judgment orders Theodule, the engineer of a Ponzi scheme that targeted Haitan-American investors, to pay disgorgement in the amount of $5,099,512, prejudgment interest of $202,638 and imposes a civil penalty of $250,000. The disgorgement represents amounts Theodule personally received or funneled to friends and relatives from the fraudulent scheme.
The Court also entered a Final Judgment of Permanent Injunction, by consent, against Defendants Creative Capital Consortium LLC and A Creative Capital Concept$ LLC (The Creative Capital Companies) enjoining them from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The final Judgment also dismisses the Commission's claims for disgorgement, prejudgment interest and civil penalty against The Creative Capital Companies, which are under the control of a Receiver who is marshaling their remaining assets for distribution to defrauded investors.
On Oct. 22, 2009, the Court had entered a Judgment of Permanent Injunction and Other Relief against Theodule.
The Commission commenced this action by filing its Complaint on Dec. 29, 2008, against Theodule and The Creative Capital Companies. The Complaint alleges violations of the antifraud provisions of the federal securities laws in connection with a Ponzi scheme through which the defendants raised at least $23.4 million from thousands of investors in the Haitian-American community nationwide. [SEC v. Creative Capital Consortium, LLC, et al., Case No. 08-81565-CIV-Hurley/Hopkins (S.D. Fla.)] (LR-21468)
SEC Files Settled Insider Trading Charges Against Wichita Man
The Securities and Exchange Commission filed a civil action in the United States District Court for the Northern District of Oklahoma on March 30, 2010, alleging that Gary Navarro, 58, of Wichita, Kansas, avoided losses of $83,602 by trading in the securities of SemGroup Energy Partners, LP (SGLP) (now Blueknight Energy Partners, LP) on the basis of material non-public information.
Navarro consented to the allegations of the Commission's complaint with admitting or denying them. The complaint alleges that in the course of his employment as a crude oil purchasing manager for SemCrude, LP, Navarro learned that SemGroup, LP, the privately-held parent of SemCrude and SGLP, and the largest customer of SGLP, was experiencing liquidity issues. Before this information became public, Navarro liquidated his SGLP securities, which then traded on the NASDAQ, and avoided losses of $83,602. According to the complaint, by secretly trading on non-public information, Navarro breached duties of trust and confidence owed to employer.
Navarro consented to a permanent injunction against future violations of the anti-fraud provisions of the Securities Exchange Act of 1934. He will pay disgorgement of the $83,602 plus prejudgment interest, and a civil penalty of $83,602.
The staff's investigation is ongoing. [SEC v. Gary Navarro, Civ. Action No. 4:10-CV-189-CVE-FHM (United States District Court for the Northern District of Oklahoma)] (LR-21469)
INVESTMENT COMPANY ACT RELEASES
Notices of Deregistration under the Investment Company Act
For the month of March 2010, a notice has been issued giving interested persons until April 20, 2010, to request a hearing on any of the following applications for an order under Section 8(f) of the Investment Company Act declaring that the applicant has ceased to be an investment company:
(Rel. IC-29193 - March 26)
The Chile Fund, Inc.
An order has been issued on an application filed by The Chile Fund, Inc. (Fund) under Section 17(b) of the Investment Company Act for an exemption from Section 17(a) of the Act to permit in-kind repurchases of shares of the Fund held by certain affiliated persons of the Fund. (Rel. IC-29194 - March 30)
The Chile Fund, et al.
An order has been issued on an application filed by The Chile Fund, Inc., et al., under Section 6(c) of the Investment Company Act for an exemption from Section 19(b) of the Act and Rule 19b-1 under the Act. The order permits certain registered closed-end management investment companies to make periodic distributions of long-term capital gains with respect to their outstanding common stock as frequently as monthly in any taxable year, and as frequently as distributions are specified by or in accordance with the terms of such investment companies' preferred stock. (Rel. IC-29195 - March 30)
Approval of Proposed Rule Change
The Commission approved a proposed rule change (SR-DTC-2010-03) filed by The Depository Trust Company under Section 19(b)(1) of the Exchange Act. The approved rule change modifies its Withdrawal-by-Transfer (WT) service to eliminate the option to receive a physical certificate from DTC for unsponsored American Depository Receipts that are part of DTC's Fast Automated Transfer Program. Publication is expected in the Federal Register during the week of March 29. (Rel. 34-61800)
Accelerated Approval of Proposed Rule Change
The Commission issued notice of filing of Amendment No. 2 and granted accelerated approval to a proposed rule change (SR-Phlx-2010-05), as modified by Amendment No. 2 thereto submitted by NASDAQ OMX PHLX pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, relating to professional orders. Publication is expected in the Federal Register during the week of March 29. (Rel. 34-61802)
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