In the Matter of Altschuler, Melvoin and Glasser LLP, and G. Victor Johnson, II, CPA
On October 4, the Commission issued an Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Section 4C of The Securities Exchange Act of 1934, Section 203(k) of the Investment Advisers Act of 1940 And Rule 102(e) of The Commission’s Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order against Altschuler, Melvoin and Glasser LLP and G. Victor Johnson, II, CPA. The Order finds that from 2002 through 2006, the accounting firm of Altschuler, Melvoin and Glasser LLP (Altschuler) and one of its partners, G. Victor Johnson (Johnson) negligently failed to conduct custody examinations of Sentinel Management Group, Inc., a registered investment adviser, in accordance with the professional standards applicable to examinations under Advisers Act Rule 206(4)-2, thereby causing Sentinel’s violations of the Custody Rule and Section 206(4) of the Advisers Act. The Order further finds that the conduct related to the exams also constituted improper professional conduct pursuant to Section 4C(b)(2) of the Exchange Act and Rule 102(e)(1)(ii) of the Commission’s Rules of Practice.
Based on the above, the Order requires Altschuler to pay disgorgement and prejudgment interest in the amount of $24,176.00 and orders Altschuler and Johnson to cease and desist from causing any violations and any future violations of Section 206(4) of the Advisers Act and Rule 206(4)-2 thereunder. The Order further censures Altschuler and denys Johnson the privilege of appearing or practicing before the Commission as an accountant. Althschuler and Johnson consented to the issuance of the Order without admitting or denying any of the findings.
Sentinel was the subject of a separate enforcement action filed by the Commission in August 2007 charging it with, among other things, improperly commingling, misappropriating, and leveraging client securities without client consent. An amended complaint was filed in that action in June 2008 adding charges against Sentinel and also charging two former Sentinel executives. (Rel. 34-63030; IA-3096; AAE Rel. 3194; File No. 3-14084)
Immediate Effectiveness of Proposed Rule Change
A proposed rule change (SR-C2-2010-004) filed by C2 Options Exchange to adopt certain rule language contained in CBOE rules 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 October 4. (Rel. 34-63021)
Proposed Rule Change
The Chicago Board Options Exchange filed a proposed rule change (SR-CBOE-2010-046) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to amend certain rules pertaining to Credit Options. Publication is expected in the Federal Register during the week of October 4. (Rel. 34-63026)
Approving Proposed Rule Change
The Commission approved a proposed rule change submitted by NASDAQ OMX PHLX (SR-Phlx-2010-108), relating to a proposed price improvement system, Price Improvement XL, pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of October 4. (Rel. 34-63027)
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