SEC News Digest

ENFORCEMENT PROCEEDINGS

In the Matter of Guillermo Haro

On June 4, 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 Guillermo Haro (Haro). The Order finds that on April 21, 2010, Haro consented to the entry of final judgment enjoining him from violations 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 and from aiding and abetting future violations of Section 17(a) of the Exchange Act and Rules 17a-3(a)(6) and 17a-3(a)(17) thereunder.

Based on the above, the Order bars Haro from association with any broker or dealer with the right to reapply for association in the capacity as a registered representative after one (1) year and as a supervisor after four (4) years to the appropriate self-regulatory organization, or if there is none, to the Commission. Haro 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. 34-62226; File No. 3-13924)

In the Matter of Ultrafem, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in Ultrafem, Inc., Administrative Proceeding No. 3-13899. The Order Instituting Proceedings (OIP) alleged that Respondents each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission.

The Default Order finds the allegations in the OIP to be true and revokes the registrations of each class of registered securities of Ultrafem, Inc., Underwriters Financial Group, Inc., Unigas E&P Inc., United Petroleum Corp., and United Resources, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-62232; File No. 3-13899)

Commission Revokes Registration of Securities of BrightCube, Inc. for Failure to Make Required Periodic Filings

On June 7, 2010, the Commission revoked the registration of each class of registered securities of BrightCube, Inc. (BrightCube) for failure to make required periodic filings with the Commission.

Without admitting or denying the findings in the Order, except as to jurisdiction, which it admitted, BrightCube consented to the entry of an Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to BrightCube, Inc. finding that it had failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of BrightCube's securities pursuant to Section 12(j) of the Exchange Act. This order settled the charges brought against BrightCube in In the Matter of BFA Liquidation Trust, et al., Administrative Proceeding File No. 3-13834.

Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:

No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .

For further information see Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, In the Matter of BFA Liquidation Trust, et al., Administrative Proceeding File No. 3-13834, Exchange Act Release No. 61773 (March 24, 2010). (Rel. 34-62233; File No. 3-13834)

In the Matter of China Yuchai International Limited

On June 7, 2010, the Commission issued an Order Instituting Cease-And-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-And-Desist Order (Order) against China Yuchai International Limited (China Yuchai).

The Order finds that China Yuchai, a foreign private issuer headquartered in Singapore whose common stock is registered with the Commission, violated the reporting, books and records, and internal control requirements of the federal securities laws when it materially overstated its net income for the year ended Dec. 31, 2005. The overstatement was caused by a RMB 168 million (USD $21 million) erroneous material adjusting journal entry made at China Yuchai's majority-owned subsidiary in Guangxi, China. China Yuchai reported a net income of $8.5 million as a result of the erroneous adjusting journal entry. In 2007, China Yuchai announced that it was conducting an investigation into a possible accounting error and that RMB $168 million "may have to be reversed." In 2008, China Yuchai restated its 2005 financial statements, reversing in full the adjusting journal entry and correcting additional smaller errors. The restated financial statements reported a net loss of $4 million.

Based on the above, the Order directs China Yuchai to cease and desist from committing or causing any violations and any future violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-1 thereunder. China Yuchai consented to the issuance of the Order without admitting or denying the findings in the Order. In determining to accept China Yuchai's offer of settlement, the Commission considered remedial acts promptly undertaken by China Yuchai and the company's cooperation during the investigation.

The Commission's investigation in this matter is continuing. (Rel. 34-62235; AAE Rel. 3139; File No. 3-13925)

INVESTMENT COMPANY ACT RELEASES

FFCM, LLC and FQF Trust

A notice has been issued giving interested persons until June 28, 2010, to request a hearing on an application filed by FFCM, LLC and FQF Trust for an order under Section 6(c) of the Investment Company Act for an exemption from Rule 12d1-2(a) under the Act. The order would permit open-end management investment companies relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-29292 - June 2)

Jackson National Life Insurance Company of New York, et al.

An order has been issued pursuant to Section 6(c) of the Investment Company Act to Jackson National Life Insurance Company of New York (JNL New York), JNLNY Separate Account I, and Jackson National Life Distributors LLC (collectively, Applicants), granting exemptions from the provisions of Sections 2(a)(32), 22(c), and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder, to the extent necessary to permit recapture, under specified circumstances, of certain contract enhancements applied to purchase payments made under deferred variable annuity contracts issued and to be issued by JNL New York. (Rel. IC-29293 - June 3)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NASDAQ OMX PHLX relating to rebates for adding and fees for removing liquidity (SR-Phlx-2010-73) 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 June 7. (Rel. 34-62196)

A proposed rule change filed by The Chicago Stock Exchange (SR-CHX-2010-12) to reduce the amount of its Trading Permit cancellation fee 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 June 7. (Rel. 34-62214)

A proposed rule change filed by The Chicago Stock Exchange (SR-CHX-2010-11) to change its transaction fees and rebates to Exchange Participants for SRO Fees and DEA Examinations 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 June 7. (Rel. 34-62215)

A proposed rule change filed by The International Securities Exchange to permit listing options series that are restricted to closing transactions if such series are listed and restricted to closing transactions on another national securities exchange and to permit opening transactions by market makers to accommodate closing transactions of other market participants in option series where the underlying security does not meet the then current requirements for continuance of such approval (SR-ISE-2010-51) 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 June 7. (Rel. 34-62216)

A proposed rule change (SR-NYSE-2010-40) filed by the NYSE deleting NYSE Rules 352(e)-(g) and adopting new Rule 3240 to correspond with rule changes filed by the Financial Industry Regulatory Authority, Inc. 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 June 7. (Rel. 34-62223)

A proposed rule change (SR-NYSEAmex-2010-47) filed by NYSE Amex deleting Rules 352(e)-(g) - NYSE Amex Equities and adopting new Rule 3240 - NYSE Amex Equities 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 June 7. (Rel. 34-62224)

Approval of Proposed Rule Change

The Commission granted approval of a proposed rule change submitted by NYSE Arca (SR-NYSEArca-2010-22), pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, relating to listing of the Teucrium Corn Fund. Publication is expected in the Federal Register during the week of June 7. (Rel. 34-62213)

SECURITIES ACT REGISTRATIONS

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