SEC News Digest

COMMISSION ANNOUNCEMENTS

Commission Meetings

Closed Meeting - Thursday, July 15, 2010 - 2:00 p.m.

The subject matter of the Closed Meeting scheduled for Thursday, July 15, 2010, will be: institution and settlement of injunctive actions; institution and settlement of administrative proceedings; consideration of amicus participation; 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.

ENFORCEMENT PROCEEDINGS

In the Matter of Ilse Cappel, CPA

On July 7, 2010, the Commission issued an order suspending Ilse Cappel, CPA, from appearing or practicing before the Commission as an accountant. The Commission suspended Cappel based upon a United States District Court's final judgment enjoining her from violating the antifraud and other provisions of the federal securities laws. [SEC v. Ilse Cappel, Civil Action No. 02 CV 2310 (S.D. Cal., July 6, 2010)]. The Commission's First Amended Complaint (Complaint) in that action alleged, among other things, that Peregrine Systems, Inc.'s (Peregrine's) management engaged in deceptive sales and accounting practices, and that Peregrine filed with the Commission materially false financial statements for at least eleven quarters, covering fiscal years 2000, 2001, and the first three quarters of fiscal 2002. In one portion of the fraud, Cappel and others engaged in a scheme to conceal Peregrine's difficulties in collecting its accounts receivable. Those difficulties arose because Peregrine improperly recorded revenue on non-binding arrangements it entered into with customers. Cappel and the others concealed the accounts receivable problems, by, among other things, selling fictitious receivables to banks and improperly accounting for cash collected at quarter end. In addition, the complaint alleged, Cappel sold Peregrine stock while in possession of material nonpublic information about the fraud. (See LR-17859A) Cappel consented to the order, which was issued pursuant to Rule 102(e) of the Commission's Rules of Practice, without admitting or denying its findings, except as to the entry of the final judgment against her.

The final judgment of the federal court-on which the Commission's order pursuant to Rule 102(e) of the Commission's Rules of Practice is based-permanently enjoined Cappel from violating Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 10b-5 and 13b2-1, and from aiding and abetting violations of Exchange Act Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B), and Exchange Act Rules 12b-20, 13a-1 and 13a-13; and ordered Cappel to pay disgorgement in the amount of $197,443, plus prejudgment interest thereon in the amount of $31,481. (Rel. 34-62465; AAE Rel-3150; File No. 3-13959)

In the Matter of Barry M. Kornfeld

On July 7, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to 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 Barry M. Kornfeld. The Order finds that on Sept. 9, 2009, a judgment was entered against Kornfeld in Securities and Exchange Commission v. William Betta, Jr., et al., (Civil Action Number 9:09-cv-80803-KAM) (S.D. Fla.), permanently enjoining him from future violations of 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.

Based on the above, the Order bars Kornfeld from association with any broker, dealer, or investment adviser. Kornfeld 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. 34-62466; IA-3049; File No. 3-13960)

In the Matter of Philip W. Milton

On July 7, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act) and Section 203(f) of the Investment Advisers Act (Advisers Act), Making Findings and Imposing Remedial Sanctions (Order) against Phillip W. Milton. The Order finds that from May 2007 through July 2009, Milton, who resides in Palm Beach Gardens, Florida, was associated with Trade-LLC, an unregistered investment adviser and an unregistered broker-dealer, as a managing member. On June 23, 2010, a final judgment was entered against Milton enjoining him from violating Section 10(b) and Rule 10b-5 of the Exchange Act, and Sections 206(1) and 206(2) of the Advisers Act in the civil action entitled SEC v. Trade-LLC, et al., Civil Action No. 9:10-cv-80737-DTKH, in the United States District Court for the Southern District of Florida. The Commission's complaint alleged that Milton and others, through Trade-LLC, raised $28 million from clients and informed them that Trade-LLC would generate profits on their behalf. The complaint alleged further that, in fact, Trade-LLC incurred trading losses and operated as a Ponzi scheme.

Based on the above, the Order bars Milton from association with any broker, dealer, or investment adviser. Milton 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. 34-62467; IA-3050; File No. 3-13961)

Commission Revokes Registration of Securities of Noble Group Holdings, Inc. (f/k/a Leasing Solutions, Inc. and Le Bon Table Brand Foods Corp.) for Failure to Make Required Periodic Filings

On July 8, 2010, the Commission revoked the registration of each class of registered securities of Noble Group Holdings, Inc. (f/k/a Leasing Solutions, Inc. and Le Bon Table Brand Foods Corp.) (LBTF) 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, LBTF 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 Noble Group Holdings, Inc. (f/k/a Leasing Solutions, Inc. and Le Bon Table Brand Foods Corp.) 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 LBTF's securities pursuant to Section 12(j) of the Exchange Act. This order settled the charges brought against LBTF in In the Matter of American Energy Services, Inc., et al., Administrative Proceeding File No. 3-13940.

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 American Energy Services, Inc., et al., Administrative Proceeding File No. 3-13940, Exchange Act Release No. 62292 (June 15, 2010). (Rel. 34-62469; File No. 3-13940)

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

On July 8, 2010, the Commission revoked the registration of each class of registered securities of EquiMed, Inc. (EQMDF) 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, EQMDF 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 EquiMed, 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 EQMDF's securities pursuant to Section 12(j) of the Exchange Act. This Order settled the charges brought against EQMDF in In the Matter of Channel America Television Network, Inc., et al., Administrative Proceeding File No. 3-13946.

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 Channel America Television Network, Inc., et al., Administrative Proceeding File No. 3-13946, Exchange Act Release No. 62364 (June 23, 2010). (Rel. 34-62470; File No. 3-13946)

Default Judgment of Permanent Injunction and Other Relief Entered Against Defendant Robert Comiskey

The Commission announced that on June 30, 2010, the Honorable Kenneth A. Marra, United States District Court Judge for the Southern District of Florida, entered a default judgment of permanent injunction and other relief against Defendant Robert Comiskey, a sales agent for Winning Kids, Inc. Comiskey defaulted by failing to appear, answer or otherwise plead in response to the Commission's complaint. The default judgment permanently enjoins Comiskey from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The default judgment orders Comiskey to pay disgorgement of $86,975 and prejudgment interest of $6,657.53. In addition, Comiskey is ordered to pay a civil penalty in an amount to be determined at a later date.

On Jan. 29, 2010, the Commission filed its complaint against Comiskey and others alleging that they participated in a fraudulent offering scheme that raised approximately $2 million from investors nationwide, purportedly for the development and marketing of children's books. [SEC v. Winning Kids, Inc., et al., Civil Action No. 10-CV-80186-MARRA/JOHNSON (S.D. Fla.)] (LR-21589)

Default Judgments of Permanent Injunction and Other Relief Entered Against Defendants Prime Time Group, Inc., n/k/a Hunt Gold Corporation and Johnny Ray Arnold

The Commission announced that on May 25, 2010, and June 11th, the Honorable James I. Cohn, United States District Court Judge for the Southern District of Florida, entered default judgments of permanent injunction and other relief against Defendants Prime Time Group, Inc., n/k/a Hunt Gold Corporation (Prime Time) and Johnny Ray Arnold (Arnold), respectively. Prime Time and Arnold defaulted by failing to appear, answer or otherwise plead in response to the Commission's complaint. The default judgments permanently enjoin Prime Time and Arnold from future violations of Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition, Arnold is barred from participating in the offering of any penny stock. The default judgments order Prime Time and Arnold to pay civil money penalties, in an amount to be determined at a later date.

On June 25, 2009, the Commission filed its complaint against Prime Time, Arnold and others alleging that they participated in a fraudulent scheme to evade the registration requirements of the securities laws and antifraud violations. [Securities and Exchange Commission v. Prime Time Group, Inc., et al., Civil Action No. 09-80952-CV-Cohn/Seltzer (S.D. Fla.)] (LR-21590)

INVESTMENT COMPANY ACT RELEASES

AXA Equitable Life Insurance Company, et al.

A notice has been issued giving interested persons until July 28, 2010, to request a hearing on an application filed by AXA Equitable Life Insurance Company, Separate Account 45 of AXA Equitable, Separate Account 49 of AXA Equitable, Separate Account A of AXA Equitable, Separate Account FP of AXA Equitable, MONY Life Insurance Company of America, and MONY America Variable Account L (collectively, the Section 26 Applicants), Separate Account 65 of AXA Equitable, and the AXA Premier VIP Trust (together with the Section 26 Applicants, the Section 17 Applicants). The Section 26 Applicants request an order under Section 26(c) of the Investment Company Act to permit the substitution of certain securities issued by a certain registered investment company. The Section 17 Applicants also request an order pursuant to Section 17(b) of the Act exempting them from the provisions of Section 17(a) of the Act to permit certain in-kind transactions in connection with the substitution. (Rel. IC-29338 - July 7)

DWS Advisor Funds, et al.

An order has been issued on an application filed by DWS Advisor Funds, et al. under Section 12(d)(1)(J) of the Investment Company Act for an exemption from Sections 12(d)(1)(A) and (B) of the Act, and under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act. The order permits certain registered open-end management investment companies to acquire shares of other registered open end management investment companies and unit investment trusts that are within and outside the same group of investment companies. (Rel. IC-29339 - July 7)

SELF-REGULATORY ORGANIZATIONS

Approval Proposed Rule Changes

The Commission issued an order approving a proposed rule change (SR-FINRA-2010-027) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to the Restated Certificate of Incorporation of Financial Industry Regulatory Authority. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62441)

The Commission granted approval to a proposed rule change (SR-CBOE-2010-043), submitted by the Chicago Board Options Exchange to enable the listing and trading of options on the Sprott Physical Gold Trust. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62463)

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NYSE Amex to Expand its $1 Strike Program (SR-NYSEAmex-2010-67) 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 July 5. (Rel. 34-62449)

A proposed rule change filed by The NASDAQ Stock Market (SR-NASDAQ-2010-083) to expand its $1 Strike Program 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 July 5. (Rel. 34-62451)

A proposed rule change filed by NYSE Amex (SR-NYSEAmex-2010-66) to list options on Trust Issued Receipts in $1 strike intervals 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 July 5. (Rel. 34-62452)

A proposed rule change filed by New York Stock Exchange (SR-NYSE-2010-51) extending the pilot program that offers liquidity takers a reduced transaction fee structure for certain bond trades executed on the NYSE BondsSM System to December 31, 2010 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 July 5. (Rel. 34-62455)

A proposed rule change, as modified by Amendment No. 1 thereto, filed by the Chicago Board Options Exchange (SR-CBOE-2010-063) to amend the CBOE Stock Exchange Fee Schedule 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 July 5. (Rel. 34-62457)

A proposed rule change filed by NYSE Amex to amend the fee schedule with respect to Firm Proprietary - Manual tiered pricing (SR-NYSEAmex-2010-64) 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 July 5. (Rel. 34-62459)

A proposed rule change (SR-BX-2010-045) filed by NASDAQ OMX BX to enable the listing and trading on BOX of options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust 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 July 5. (Rel. 34-62464)

SECURITIES ACT REGISTRATIONS

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RECENT 8K FILINGS

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