Closed Meeting - Thursday, May 6, 2010 - 2:00 p.m.
The subject matter of the Closed Meeting scheduled for Thursday, May 6, 2010, will be: settlement of injunctive actions; a litigation matter; an adjudicatory matter; and other matters relating to enforcement proceedings.
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.
RULES AND RELATED MATTERS
Order Approving Application for Relief from a Statutory Disqualification
On April 27, 2010, the Commission issued an Order approving the application of the Financial Industry Regulatory Authority, Inc. (FINRA), for relief from a statutory disqualification, to permit Patrick C. Lubin to associate with O'Brien Shepard, Inc. (O'Brien), a member of FINRA. The Order states that, based on the representations made by FINRA and O'Brien with respect to the supervision of Mr. Lubin and the conditions placed on his employment, the Commission will not institute proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act), and will not direct FINRA to bar the proposed association, as provided in Section 15A(g)(2) of the Exchange Act. (Rel. 34-61995)
In the Matter of Marlin R. Brinsky, CPA
On April 28, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings and Imposing Remedial Sanctions (Order) against Marlin R. Brinsky, CPA. The Order finds that, on April 21, 2010, a final judgment was entered against Brinsky, permanently enjoining him from future violations of Rule 2-02 of Regulation S-X in the civil action entitled SEC v. Exotics.com, Inc., et al, Civil Action Number 2:05-cv-00531-PMP-GWF, in the United States District Court for the District of Nevada. Brinsky also was ordered to pay a $20,000 civil money penalty.
Based on the above, the Order suspends Brinsky from appearing or practicing before the Commission as an accountant, with the right to apply for reinstatement after two years. Brinsky consented to the issuance of the Order without admitting or denying any of the findings except as to the entry of the final judgment. (Rel. 34-61998; AAE Rel. 3130; File No. 3-13872)
In the Matter of Marc S. Dreier, Esq.
On April 29, 2010, the Commission issued an Order of Forthwith Suspension Pursuant to Rule 102(e)(2) of the Commission's Rules of Practice. The Order finds that Dreier, while an attorney, pled guilty to having engaged in a variety of criminal activities, including securities fraud. As a result, Dreier was sentenced to federal incarceration for twenty years and was disbarred from the practice of law by the New York Supreme Court, Appellate Division.
Based on the above, the Order suspends Dreier from appearing or practicing as an attorney before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice. (Rel. 34-62002; File No. 3-13873)
SEC Files Anti-Bribery Charges Against Former Finance Executives and Senior Employees of Global Tobacco Company
On April 28, 2010, the Commission filed a civil injunctive action in the U.S. District Court for the District of Columbia charging four former employees of Dimon, Inc., now Alliance One International, Inc., with violating, among other things, the anti-bribery provisions of the Foreign Corrupt Practices Act of 1977. According to the Commission's complaint, these violations were in connection with the payment of more than $3 million in bribes to various Kyrgyzstan government officials to purchase Kyrgyz tobacco from 1996 to 2004; and the payment of approximately $542,590 to government officials of the Thailand Tobacco Monopoly in exchange for obtaining approximately $9.4 million in sales contracts from 2000 to 2003.
Without admitting or denying the allegations in the Commission's complaint, defendants Bobby J. Elkin, Jr., Baxter J. Myers, Thomas G. Reynolds, and Tommy L. Williams consented to the entry of final judgments permanently enjoining each of them from violating Section 30A, and aiding and abetting violations of Sections 13(b)(2)(A) and 13(b)(2)(B), of the Securities Exchange Act of 1934. Defendants Myers and Reynolds also agreed to pay civil monetary penalties of $40,000 each.
The settlement with defendant Elkin takes into account his cooperation with the Commission's investigation.
The Commission acknowledges the assistance in this investigation from the Department of Justice, Fraud Section, and the Federal Bureau of Investigation.
The Commission's investigation is continuing. [SEC v. Bobby J. Elkin, Jr., Baxter J. Myers, Thomas G. Reynolds, and Tommy L. Williams, Civil Action No. 1:10-cv-00661 (RMU) (D.D.C.)] (LR-21509)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by the International Securities Exchange (SR-ISE-2010-33) to establish strike price intervals and trading hours for options on Index-Linked Securities 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 May 3. (Rel. 34-61959)
A proposed rule change filed by NASDAQ OMX BX to amend the by-laws of The NASDAQ OMX Group, Inc. (SR-BX-2010-029) 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 May 3. (Rel. 34-61993)
A proposed rule change filed by National Stock Exchange to amend the fee and rebate schedule issued pursuant to Exchange Rule 16.1(c) with respect to the liquidity adding rebate for securities priced under one dollar (SR-NSX-2010-04) 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 May 3. (Rel. 34-61996)
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