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U.S. Securities and Exchange Commission

SEC News Digest

Issue 2010-149
August 10, 2010

COMMISSION ANNOUNCEMENTS

Securities and Exchange Commission Suspends Trading in the Securities of Six Issuers for Failure to Make Required Periodic Filings

The U.S. Securities and Exchange Commission announced the temporary suspension of trading in the securities of the following issuers, commencing at 9:30 a.m. EDT on Aug. 10, 2010, and terminating at 11:59 p.m. EDT on Aug. 23, 2010.

  • Appiant Technologies, Inc. (APPS)
  • Cobalis Corp. (CLSC)
  • FutureLink Corp. (FTRLQ)
  • STM Wireless, Inc. (STMIQ)
  • Supermail International, Inc. (n/k/a PBHG, Inc.) (PBHN)
  • Women First Healthcare, Inc. (WFHCQ)

The Commission temporarily suspended trading in the securities of these six issuers due to a lack of current and accurate information about the companies because they have not filed periodic reports with the Commission in over two years. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).

The Commission cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by these companies.

Brokers and dealers should be alert to the fact that, pursuant to Exchange Act Rule 15c2-11, at the termination of the trading suspensions, no quotation may be entered relating to the securities of the subject companies unless and until the broker or dealer has strictly complied with all of the provisions of the rule. If any broker or dealer is uncertain as to what is required by the rule, it should refrain from entering quotations relating to the securities of these companies that have been subject to a trading suspension until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. Any broker or dealer with questions regarding the rule should contact the staff of the Securities and Exchange Commission in Washington, DC at (202) 551-5720. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

If any broker, dealer or other person has any information which may relate to this matter, they should immediately communicate it to the Delinquent Filings Branch of the Division of Enforcement at (202) 551-5466, or by e-mail at DelinquentFilings@sec.gov. (Rel. 34-62673)


Securities and Exchange Commission Suspends Trading in the Securities of Eight Issuers for Failure to Make Required Periodic Filings

The U.S. Securities and Exchange Commission announced the temporary suspension of trading in the securities of the following issuers, commencing at 9:30 a.m. EDT on Aug. 10, 2010, and terminating at 11:59 p.m. EDT on Aug. 23, 2010.

  • Geotec, Inc. (GETC)
  • InnoPet Brands Corp. (INBC)
  • Marbledge Group, Inc. (n/k/a AR Growth Finance Corp.) (ARGW)
  • Phlo Corp. (PHCP)
  • Pliant Systems, Inc. (PLNS)
  • Southeast Banking Corp. (STBPQ)
  • TNX Television Holdings, Inc. (TNXT)
  • WestPoint Stevens, Inc. (WSPTQ)

The Commission temporarily suspended trading in the securities of these eight issuers due to a lack of current and accurate information about the companies because they have not filed periodic reports with the Commission in over two years. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).

The Commission cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by these companies.

Brokers and dealers should be alert to the fact that, pursuant to Exchange Act Rule 15c2-11, at the termination of the trading suspensions, no quotation may be entered relating to the securities of the subject companies unless and until the broker or dealer has strictly complied with all of the provisions of the rule. If any broker or dealer is uncertain as to what is required by the rule, it should refrain from entering quotations relating to the securities of these companies that have been subject to a trading suspension until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. Any broker or dealer with questions regarding the rule should contact the staff of the Securities and Exchange Commission in Washington, DC at (202) 551-5720. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

If any broker, dealer or other person has any information which may relate to this matter, they should immediately communicate it to the Delinquent Filings Branch of the Division of Enforcement at (202) 551-5466, or by e-mail at DelinquentFilings@sec.gov. (Rel. 34-62675)


ENFORCEMENT PROCEEDINGS

In the Matter of Diatect International Corporation

An Administrative Law Judge has issued an Order Making Findings and Revoking Registration by Default (Default Order) in Diatect International Corporation, Administrative Proceeding No. 3-13938. The Order Instituting Proceedings (OIP) alleged that Diatect International Corporation failed to file its required reports for the quarter ended Sept. 30, 2009, and the year ended Dec. 31, 2009, while its securities were registered with the Securities and Exchange Commission. The Default Order finds the allegations in the OIP to be true and revokes the registration of each class of registered securities of Diatect International Corporation pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-62672; File No. 3-13938)


Commission Orders Hearings on Registration Suspension or Revocation Against Six Companies for Failure to Make Required Periodic Filings

In conjunction with today's trading suspension, the Commission also instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registration of each class of the securities of six companies for failure to make required periodic filings with the Commission:

  • Appiant Technologies, Inc. (APPS)
  • Cobalis Corp. (CLSC)
  • FutureLink Corp. (FTRLQ)
  • STM Wireless, Inc. (STMIQ)
  • Supermail International, Inc. (n/k/a PBHG, Inc.) (PBHN)
  • Women First Healthcare, Inc. (WFHCQ)

In this Order, the Division of Enforcement (Division) alleges that the six issuers are delinquent in their required periodic filings with the Commission.

In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the Respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these Respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-62674; File No. 3-13998)


Commission Orders Hearings on Registration Suspension or Revocation Against Eight Companies for Failure to Make Required Periodic Filings

In conjunction with today's trading suspension, the Commission also instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registration of each class of the securities of eight companies for failure to make required periodic filings with the Commission:

  • Geotec, Inc. (GETC)
  • InnoPet Brands Corp. (INBC)
  • Marbledge Group, Inc. (n/k/a AR Growth Finance Corp.) (ARGW)
  • Phlo Corp. (PHCP)
  • Pliant Systems, Inc. (PLNS)
  • Southeast Banking Corp. (STBPQ)
  • TNX Television Holdings, Inc. (TNXT)
  • WestPoint Stevens, Inc. (WSPTQ)

In this Order, the Division of Enforcement (Division) alleges that the eight issuers are delinquent in their required periodic filings with the Commission.

In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the Respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these Respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-62676; File No. 3-13999)


In the Matter of Stanton B.J. DeFreitas

An Administrative Law Judge has issued an Order Making Findings and Imposing Sanction by Default (Default Order) in Administrative Proceeding No. 3-13923, Stanton B.J. DeFreitas. The Order Instituting Proceedings (OIP) alleged that, on March 26, 2010, the U.S. District Court for the Southern District of New York issued a permanent injunction against DeFreitas. According to the OIP, the injunction bars DeFreitas from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), and Exchange Act Rule 10b-5. It also bars DeFreitas from participating directly or indirectly in the offering of penny stock pursuant to Section 20(g) of the Securities Act and Section 21(d)(6) of the Exchange Act.

The Default Order finds the allegations to be true. It concludes that, pursuant to Section 15(b) of the Securities Exchange Act of 1934, it is in the public interest to bar DeFreitas from association with any broker or dealer. (Rel. 34-62677; File No. 3-13923)


In the Matter of Stephen J. Brace

On Aug. 10, 2010, the Commission issued Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Notice of Hearing (Order) against Stephen J. Brace. The Order alleges that:

From at least June 2004 through April 2005, Respondent was a registered representative at Advanced Planning Securities, Inc. (Advanced Planning), a broker-dealer that, from at least June 1, 2004 until Feb. 24, 2009, was registered with the Commission pursuant to Section 15(b) of the Exchange Act and was a member of the National Association of Securities Dealers, now known as the Financial Industry Regulatory Authority. The Order further alleges that on Oct. 23, 2008, Brace pleaded guilty to one Florida state felony count of aggravated white collar crime, in Florida v. Brace, No. 2007 CF 6277 A (Fla. 1st Cir. Ct.). On Jan. 21, 2009, a judgment was entered against Brace. That day, Brace was sentenced to twenty-five years of prison, followed by five years of probation. The count of the criminal information to which Brace pleaded guilty alleges that, from on or about Jan. 6, 2004 through on or about Sept. 15, 2006, Brace committed aggravated white collar crime under Florida law. The criminal information further alleges that Respondent engaged in "at least two white collar crimes relating to the sale of securities and investor protection."

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Brace an opportunity to respond to these allegations, and to determine what sanctions, if any, are appropriate and in the public interest. As directed by the Commission, an administrative law judge shall issue an initial decision in this matter no later than 210 days from the date of service of the Order Instituting Proceedings. (Rel. 34-62679; File No. 3-14000)


INVESTMENT COMPANY ACT RELEASES

The Blackstone Group, L.P.

A notice has been issued giving interested persons until Aug. 30, 2010, to request a hearing on an application filed by The Blackstone Group, L.P. for an order to exempt certain future partnerships, limited liability companies and other investment vehicles formed for the benefit of eligible employees of The Blackstone Group, L.P. and its affiliates from certain provisions of the Investment Company Act. Each partnership or other investment vehicle will be an "employees' securities company" within the meaning of Section 2(a)(13) of the Act. (Rel. IC-29378 - August 5)


SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Change

A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2010-110) relating to billing policies 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 August 9. (Rel. 34-62661)


Approval of Proposed Rule Change

The Commission approved a proposed rule change submitted by The NASDAQ Stock Market (SR-NASDAQ-2010-077), pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, relating to pricing for direct circuit connections. Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62663)


Proposed Rule Change

The Financial Industry Regulatory Authority filed a proposed rule change (SR-FINRA-2010-037) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder that proposes to amend FINRA Rule 5190 (Notification Requirements for Offering Participants). Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62664)


SECURITIES ACT REGISTRATIONS


RECENT 8K FILINGS

 

http://www.sec.gov/news/digest/2010/dig081010.htm


Modified: 08/10/2010