Securities and Exchange Commission Suspends Trading in 8000, Inc. Because of Questions About the Accuracy of Statements Concerning a Cash Dividend the Company Planned to Pay Its Shareholders
The Securities and Exchange Commission announced the temporary suspension of trading in the securities of 8000, Inc., commencing at 9:30 a.m. EDT on November 4, 2010, and terminating at 11:59 p.m. EST on November 17, 2010. The Commission temporarily suspended trading in the securities of 8000, Inc. due to a lack of current and accurate information about the company and its securities because of questions about statements the company made concerning, among other things, a cash dividend it announced it would pay stockholders and Monk's Den, an investment program and online investor network the company disclosed it acquired in September 2010. The Commission's investigation is ongoing.
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 this company.
Further, brokers and dealers should be alerted to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered relating to the securities of 8000, Inc. 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 8000, Inc. 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, D.C. 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, the Boston Regional Office of the Securities and Exchange Commission, which is investigating the matter, should be telephoned at (617) 573-8900. (Rel. 34-63242)
In the Matter of Gregory M. Bell
On November 3, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions (Order) against Gregory M. Bell (Bell). Bell consented to the issuance of an Order barring him from association with any investment adviser without admitting or denying any of the findings in the Order.
The Order finds that, on July 8, 2009 the United States filed a criminal complaint against Bell that charged Bell with wire fraud based on his engineering 86 sham "round-trip" banking transactions between February 26, 2008 and September 24, 2008. The sham transactions gave investors in Bell's Lancelot funds the false impression that the securities were paying in a timely manner. On September 30, 2010 Bell was sentenced for this conduct. U.S. v. Bell, No. 09-cr-269 (D. Minn.) The Order further finds that, also on July 8, 2009, the Commission filed a complaint in the U.S. District Court for Minnesota against Bell, LIM, and other Defendants and Relief Defendants. The complaint similarly alleged that, using new investor money he raised in the first half of 2008, Bell concocted the "round- trip" transactions to conceal the investments' delinquencies. The complaint further alleged that Bell continued to send investors monthly statements that reported continuing profits from their investments during this February to September 2008 period while he and LIM wrongfully withdrew approximately $40 million from the Lancelot Funds. The Order further finds that on October 5, 2010 the Court entered a permanent injunction against Bell and LIM for the conduct set forth in the Commission's complaint. (Rel. IA-3102; File No. 3-14106)
In the Matter of Royal Dutch Shell PLC and Shell International Exploration and Production Inc.
On November 4, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Sanctions and A Cease-and Desist Order (Order) against Royal Dutch Shell plc (Shell) and Shell International Exploration and Production Inc. (SIEP). The Order finds that SIEP violated the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and Shell violated the record keeping and internal controls provisions of the FCPA.
The Order finds that from September 2002 through November 2005, SIEP, on behalf of Shell, authorized the reimbursement or continued use of services provided by a company acting as a customs broker that involved suspicious payments of approximately $3.5 million to officials of the Nigerian Customs Service in order to obtain preferential treatment during the customs process for the purpose of assisting Shell in obtaining or retaining business in Nigeria on Shell's Bonga Project. As a result of these payments, Shell profited in the amount of approximately $14 million. None of the improper payments was accurately reflected in Shell's books and records, nor was Shell's system of internal accounting controls adequate at the time to detect and prevent these suspicious payments.
Based on the above, the Order requires (1) SIEP to cease and desist from committing or causing any violations and any future violations of Section 30A of the Securities Exchange Act of 1934 (Exchange Act); (2) Shell to cease and desist from committing or causing any violations and any future violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act; and (3) SIEP and Shell to pay jointly and severally disgorgement of $14,153,536 and prejudgment interest thereon of $3,995,923. SIEP and Shell consented to the issuance of the Order without admitting or denying any of the findings. (Rel. 34-63243; AAE Rel. 3204; File No. 3-14107)
In the Matter of GlobalSantaFe Corp.
The United States Securities and Exchange Commission today charged GlobalSantaFe Corp. (GSF) (c/k/a Transocean Worldwide Inc.) with bribery and other violations of the Foreign Corrupt Practices Act (FCPA).
GSF will pay a total of approximately $5.9 million dollars to settle the SEC's charges.
According to the SEC's complaint, filed today in federal district court in Washington, D.C., from approximately January 2002 through July 2007, GSF made illegal payments through companies acting as customs brokers for GSF to officials of the Nigerian Customs Service (NCS).
The SEC complaint alleges that instead of moving its oil drilling rigs out of Nigerian waters as required by Nigerian law when GSF's permit to temporarily import the rigs into Nigeria had expired, GSF made illicit payments to NCS officials to secure documentation reflecting that the rigs had moved out of Nigerian waters, when in fact, the rigs had not moved at all.
The SEC alleges that GSF, through its customs brokers, made other suspicious payments, some characterized as "interventions," to Nigerian customs officials through GSF's customs brokers. In addition, GSF made a number of suspicious payments to government officials in Gabon, Angola, and Equatorial Guinea through GSF's customs brokers. These payments were described on invoices as, for example, "customs vacation," "customs escort," "costs extra police to obtain visa," "official dues," and "authorities fees." None of the payments were accurately reflected in GSF's books and records, nor was GSF's system of internal accounting controls adequate at the time to detect and prevent these illegal payments.
Without admitting or denying the SEC's allegations, GSF has consented to the entry of a court order permanently enjoining it from violating the anti-bribery and record keeping and internal controls provisions in Section 30A and Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. GSF also consented to the entry of a court order requiring GSF to pay disgorgement of $2,694,405, prejudgment interest of $1,063,760, and a civil penalty of $2.1 million. The proposed settlement is subject to court approval. [SEC v. GlobalSantaFe Corp., Civil Action No. 1:10-CV-01890 (RMC) (D.D.C.)] (LR-21724; AAE Rel. 3201)
SEC Charges Transocean for Bribery Scheme in Nigeria - Transocean to Pay Disgorgement and Civil Penalties of $7,265,080
The Securities and Exchange Commission filed a settled enforcement action on November 4, 2010, in the U.S. District Court for the District of Columbia charging Transocean Inc. (Transocean), an international provider of offshore drilling services and equipment to oil companies throughout the world, with violations of the anti-bribery, books and records, and internal controls provisions of the Foreign Corrupt Practices Act (FCPA). Transocean has agreed to pay disgorgement, interest, and a civil penalty totaling $7,265,080 to settle the charges.
The SEC's complaint alleges that:
From at least 2002 through 2007, Transocean made illicit payments through its customs agents to Nigerian government officials to extend the temporary importation status of its drilling rigs, to obtain false paperwork associated with its drilling rigs, and obtain inward clearance authorizations for its rigs and a bond registration. In addition, Transocean made illicit payments through Panalpina World Transport Holding Ltd.'s Pancourier express courier service to Nigerian government officials to expedite the import of various goods, equipment and materials into Nigeria. In most instances, customs duties for these items were not paid by either Panalpina or Transocean. Transocean also made illicit payments through Panalpina to Nigerian government officials to expedite the delivery of medicine and other materials into Nigeria. Transocean's total gains from the conduct were approximately $5,981,693.
In 2002, certain Transocean managers, including the then Executive Vice President, Operations and Chief Operating Officer ("COO"), authorized four "paper moves" for two rigs operating in Nigeria because Transocean was unwilling to interrupt profitable drilling operations once the relevant Temporary Import Permit ("TIP") or TIP extension had expired. On June 10, 2002, Transocean's then Country Manager in Nigeria sent an e-mail to the then Africa Region Manager, indicating that there was a temporary import issue related to three rigs. In the e-mail the Country Manager sought permission to do paper moves, which would falsely depict the rigs leaving and reentering the country. The Country Manager indicated that the paper moves were necessary in order to create a more "defendable" file and to enable Transocean to avoid severe penalties connected to failing to move the rigs once the relevant TIP had expired. The e-mail also contained a quote from Transocean's customs agent for the cost of obtaining false paperwork related to the paper moves from the Nigeria Customs Service (NCS). The Country Manager added that "The only alternative is to physically move the rigs out of the country, and this is clearly not acceptable." On June 11, 2002, the Africa Region Manager sent an e-mail to the Executive Vice President, Operations and COO in Houston, seeking authorization for the paper moves. The same day, the Executive Vice President, Operations and COO sent an e-mail approving the paper moves. Another paper move involving a third rig also occurred in 2002, and two additional paper moves involving a fourth rig occurred in 2007. Transocean's total gain from the paper moves was approximately $4,261,363.
Prior to the 2007 paper moves, Transocean was on notice of problems with its TIP process. On April 27, 2004, the Nigerian Temporary Import Permit Panel (TIP Panel) notified Transocean that Transocean would be penalized approximately $1.17 million after an investigation showed Transocean had not complied with TIP laws. In May 2004, Transocean's Corporate Affairs Manager in Nigeria sent several emails informing the Transocean customs supervisor that he had visited a member of the TIP Panel and discussed making a payment to reduce the penalty. In particular, the email stated that "We will spend money on them [TIP Panel members] through him, but definitely we will pay less to the Federal Government." On July 28, 2004, the penalty was reduced to $340,000. While there is no record indicating what payment, if any, was in fact made to the Nigerian TIP Panel official, the TIP Panel investigation put Transocean on notice that there were problems with the TIP process.
From approximately 2002 to 2006, Transocean also made illicit payments totaling $207,170 to a second customs agent for what were described on invoices as "customs intervention" charges related to six rigs. Transocean's employees believed that the invoiced "intervention" charges were likely illicit payments to customs officials. From 2002 to 2007, Transocean also made illicit payments to Nigerian customs officials through Panalpina, a freight forwarding company headquartered in Switzerland, and Panalpina's express door to door courier service, Pancourier, to import goods and materials into Nigeria without paying applicable duties to Nigerian customs officials. Pancourier invoiced Transocean for "local processing charges" related to the shipments, and the invoice amounts were typically 25% to 40% of the actual duties owed.
The total customs duties that Transocean avoided through its use of Pancourier were approximately $1,480,419. Transocean also used Panalpina to make illicit payments to Nigerian government officials to expedite the delivery of medicine and other goods totaling $32,741.
Transocean violated Section 30A of the Securities Exchange Act of 1934 when its senior management and employees made illicit payments through their freight forwarding and customs agents to Nigerian government officials to obtain various customs-related benefits. Transocean violated Section 13(b)(2)(B) of the Exchange Act by failing to devise and maintain an effective system of internal controls to prevent or detect the violations. Transocean violated Section 13(b)(2)(A) of the Exchange Act by failing to make and keep accurate books and records. In related criminal proceedings, Transocean Ltd. and Transocean Inc. reached a settlement with the U.S. Department of Justice, Fraud Section and agreed to pay $13.44 million.
Without admitting or denying the Commission's allegations, Transocean has consented to the entry of a court order permanently enjoining it from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and ordering it to pay $5,981,693 in disgorgement, plus prejudgment interest of $1,283,387.
The SEC acknowledges assistance from the U.S. Department of Justice, Fraud Section and the Federal Bureau of Investigation. [SEC v. Transocean Inc., Civil Action No. 1:10-CV-01891 (JDB) (D.D.C.)] (LR-21725; AAE Rel. 3202)
SEC Charges Pride International with Violating the Foreign Corrupt Practices Act
The Securities and Exchange Commission today charged one of the world's largest offshore drilling companies with violating the Foreign Corrupt Practices Act (FCPA) by paying approximately $2 million to foreign officials in eight countries.
The SEC's complaint, filed in federal district court in Houston, alleges that from 2001 through 2006 Pride International, Inc. and its subsidiaries bribed government officials in Venezuela, India, Mexico, Kazakhstan, Nigeria, Saudi Arabia, the Republic of the Congo, and Libya. The bribery schemes allowed Pride and its subsidiaries to extend drilling contracts, obtain the release of drilling rigs and other equipment from customs officials, reduce customs duties, extend the temporary importation status of drilling rigs, lower various tax assessments, and obtain other improper benefits.
To settle the SEC's charges, Pride will pay disgorgement of $19,341,870 plus pre-judgment interest of $4,187,848. The company will pay an additional $32,625,000 to resolve related criminal proceedings announced today by the Department of Justice.
According to the SEC's complaint, from 2003 through 2005, Pride's former Venezuela country manager authorized bribes totaling approximately $384,000 to an official of Venezuela's state-owned oil company to secure extensions of three drilling contracts. In addition, the country manager authorized a bribe of approximately $30,000 to an employee of Venezuela's state-owned oil company to secure the payment of receivables.
The SEC alleges that in 2003 a French subsidiary of Pride paid three bribes totaling approximately $500,000, believing that the funds would be given to an Indian judge to influence customs litigation relating to the importation of a drilling rig. According to the complaint, a Pride employee in the U.S. had knowledge of the payments at the time they were made.
The complaint alleges that in 2004 a former Pride vice president authorized a $10,000 bribe to a Mexican customs official in return for favorable treatment regarding customs deficiencies identified during an inspection of a supply boat.
The SEC's complaint also alleges that from 2001 through 2006 numerous improper payments made by Pride subsidiaries operating in Mexico, Kazakhstan, Nigeria, Saudi Arabia, the Republic of the Congo, and Libya were not correctly recorded in those subsidiaries' books and records. As a result, the complaint alleges that Pride failed to make and keep accurate books and records and failed to devise and maintain appropriate internal controls.
Without admitting or denying the SEC's allegations, Pride consented to the entry of a final judgment ordering disgorgement plus pre-judgment interest and permanently enjoining it from violating the anti-bribery, books and records, and internal controls provisions of the FCPA, codified as Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The proposed settlement is subject to court approval.
The Department of Justice charged Pride in a criminal information filed today with conspiring to violate the anti-bribery and books and records provisions of the FCPA, violating the anti-bribery provisions of the FCPA, and violating the books and records provisions of the FCPA. The department and Pride International agreed to resolve the charges by entering into a deferred prosecution agreement. The department also filed a criminal information charging a Pride subsidiary with conspiring to violate the anti-bribery provisions of the FCPA, violating the anti-bribery provisions of the FCPA, and aiding and abetting the violation of the books and records provisions of the FCPA. Pride's subsidiary agreed to plead guilty to the charges. The agreements require the payment of a $32,625,000 criminal penalty.
The SEC previously charged two former Pride employees-Bobby Benton and Joe Summers-for their roles in the scheme. The SEC filed a civil action against Benton on December 11, 2009 and the court entered final judgment on August 9, 2010. The Summers lawsuit was filed by the SEC on August 5, 2010 and final judgment was entered on August 11, 2010. Without admitting or denying the SEC's allegations, each consented to a permanent injunction prohibiting future FCPA violations. Benton and Summers also agreed to pay civil penalties of $40,000 and $25,000, respectively. [SEC v. Pride International, Inc., Civil Action No. 4:10-cv-4335 (S.D. Texas)] (LR-21726; AAE Rel. 3203)
SEC Charges Panalpina with Violating the Foreign Corrupt Practices Act
The Securities and Exchange Commission today charged the U.S. subsidiary of Panalpina World Transport (Holding) Ltd. (PWT), a global freight forwarding and logistics services provider based in Basel, Switzerland, with violating the Foreign Corrupt Practices Act (FCPA) by bribing foreign officials around the world on behalf of its customers.
The SEC's complaint, filed in federal district court in Houston, alleges that from 2002 through 2007 Panalpina, Inc. (Panalpina), in concert with other PWT subsidiaries and affiliates (Panalpina Group), bribed government officials in countries including Nigeria, Angola, Brazil, Russia, and Kazakhstan. The bribes were paid by Panalpina to obtain preferential customs, duties, and import treatment for its customers in connection with international freight shipments. Although PWT, Panalpina, and the Panalpina Group are not issuers for purposes of the FCPA, many of their customers are. By paying bribes on behalf of issuers, Panalpina both violated and aided and abetted violations of the FCPA.
To settle the SEC's charges, Panalpina will pay $11,329,369. PWT and Panalpina will pay an additional $70,560,000 to resolve related criminal proceedings announced today by the Department of Justice.
The complaint alleges that although the bribery schemes varied, most shared several similarities. The customers often used Panalpina or other Panalpina Group companies to ship goods internationally or sought Panalpina's assistance in obtaining customs or logistics services in the country to which goods were shipped. For various reasons-including delayed departures, insufficient or incorrect documentation, the nature of the goods being shipped and imported, or the refusal of local government officials to provide services without unofficial payments-Panalpina's customers sometimes faced delays in importing goods. In other cases, Panalpina's customers sought to avoid local customs duties or inspection requirements or otherwise sought to import goods in circumvention of local law. In order to secure the importation of goods under these circumstances, Panalpina's customers often authorized Panalpina and other Panalpina Group companies to bribe foreign officials.
The complaint further alleges that Panalpina Group companies invoiced Panalpina's customers for the bribes. The invoices, which contained both legitimate and illegitimate charges, concealed the bribes by inaccurately referring to them as "local processing," "special intervention," "special handing," and other seemingly legitimate fees.
Without admitting or denying the SEC's allegations, Panalpina consented to the entry of a final judgment ordering disgorgement and permanently enjoining it from violating the FCPA's anti-bribery provisions and aiding and abetting violations of the FCPA's books and records and internal controls provisions. These provisions are codified as Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The proposed settlement is subject to court approval.
The Department of Justice today filed a criminal information charging PWT with conspiring to violate and violating the anti-bribery provisions of the FCPA. The department and PWT agreed to resolve the charges by entering into a deferred prosecution agreement. The department also filed a criminal information charging Panalpina with conspiring to violate the books and records provisions of the FCPA and with aiding and abetting certain customers' violations of the books and records provisions of the FCPA. Panalpina agreed to plead guilty to the charges. The agreements require the payment of a $70,560,000 criminal penalty.
The SEC acknowledges and appreciates the assistance of the Department of Justice's Fraud Section and the Federal Bureau of Investigation.
The SEC's investigation is continuing. [SEC v. Panalpina, Inc., Civil Action No. 4:10-cv-4334 (S.D. Texas)] (LR-21727; AAE Rel. 3205)
SEC Settles FCPA Charges Against Noble Corporation
The Securities and Exchange Commission today announced a settlement with Noble Corporation (Noble) for violations of the Foreign Corrupt Practices Act (FCPA). The SEC alleged that Noble, an offshore drilling contractor headquartered in Switzerland with an office in Sugarland, Texas, made improper payments through its custom agents to officials of the Nigeria Customs Service to obtain permits and permit extensions necessary for operating offshore oil rigs in Nigeria. As part of the settlement, Noble will pay $5,576,998 in disgorgement and prejudgment interest.
The Commission's action against Noble was filed in coordination with a parallel criminal action brought by the United States Department of Justice, and several other federal civil and criminal actions against companies involved in oil operations in Nigeria.
The Commission's complaint, filed today in federal court in Houston, alleges that from January 2003 through May 2007, Noble authorized payments by its Nigerian subsidiary to its customs agent, believing that the agent would give portions of the payments to Nigerian government officials to induce them to grant temporary importation permits (TIPs) and TIP extensions for Noble's drilling rigs. Although Noble was required to move its rigs out of Nigeria when TIPs and any extensions had expired, it did not do so in order to avoid the costs of moving the rigs, the potential loss of profits, and the break in performance of rigs under contract. Noble used the customs agents to submit false documents to Nigerian Customs Service showing export and re-import of its drilling rigs when in fact the rigs never moved. Noble paid its customs agents to present these false documents to the Nigeria Customs Service (NCS) and, through the customs agents, made improper payments to officials of the NCS to process the false documents and issue new TIPS. Noble obtained eight TIPs with false documentation.
The Commission's complaint further alleges that Noble improperly recorded in its books and records the payments that its customs agent passed on to Nigerian government officials. Noble also failed to maintain internal controls to detect and prevent these payments.
In the Commission's settlement, Noble has agreed, without admitting or denying the allegations of the complaint, to the entry of a Court order enjoining it from violating the anti-bribery, books and records, and internal controls provisions of the federal securities laws. The order also requires that Noble disgorge ill-gotten gains of $4,294,933 and pay prejudgment interest of $1,282,065.
The settlement takes into consideration Noble's self-reporting and its substantial cooperation during the investigation, as well as its remediation efforts following its extensive internal review. [SEC v. Noble Corporation, Civil Action No. 4:10-cv-4336 (S.D. Texas)] (LR-21728; AAE Rel. 3026)
SEC Charges Tidewater Inc. With FCPA Violations
The Securities and Exchange Commission today charged New Orleans-based shipping company Tidewater Inc. with violating the Foreign Corrupt Practices Act (FCPA) for paying bribes to foreign government officials in Azerbaijan disguised as payments for legitimate services. Tidewater is also charged with authorizing improper payments to customs officials in Nigeria that were inaccurately recorded as legitimate expenses in the Company's books and records.
The SEC alleges that Tidewater, directly or through its subsidiaries and agents, paid $160,000 in bribes to foreign government officials in Azerbaijan in 2001, 2003 and 2005 in order to influence acts and decisions by Azeri tax officials to resolve local audits in favor of a Tidewater subsidiary. The SEC further alleges that from January 2002 through March 2007, Tidewater, through a subsidiary, reimbursed approximately $1.6 million to its customs broker in Nigeria used to make improper payments to local Nigerian customs officials. These improper payments were made in order to induce the Nigerian officials to disregard regulatory requirements in Nigeria relating to the temporary importation of Tidewater's vessels into Nigerian waters. Tidewater improperly recorded these payments as legitimate expenses in its books and records.
The SEC's complaint charges that Tidewater violated Section 30A of the Securities Exchange Act of 1934 (Exchange Act) by making illicit payments to Azeri government officials through its subsidiaries and agent. The complaint also charges Tidewater with violating Section 13(b)(2)(A) of the Exchange Act for improperly recording the Azeri and Nigerian payments in its books and records and Section 13(b)(2)(B) of the Exchange Act for failing to have adequate internal controls to detect and prevent the illegal payments.
Without admitting or denying the SEC's allegations, Tidewater has consented to a court order permanently enjoining it from future violations of these statutory provisions; and ordering it to pay $7,223,216 in disgorgement plus prejudgment interest of $881,146, and a $217,000 civil penalty. The Commission is not imposing an additional monetary penalty against Tidewater in light of a criminal fine the company agreed to pay to U.S. Department of Justice in a parallel criminal case involving substantially the same misconduct.
The SEC acknowledges the assistance of the U.S. Department of Justice, Fraud Section and the Federal Bureau of Investigation. [SEC Tidewater Inc., Civil Action No. 2:10-CV-04180 (U.S. District Court for the Eastern District of Louisiana] (LR-21729; AAE Rel. 3207)
In the Matter of Anjali Walter
The Securities and Exchange Commission announced that on Nov. 2, 2010, the Honorable Alvin K. Hellerstein of the United States District Court for the Southern District of New York entered a judgment against Relief Defendant Anjali Walter (Walter). Without admitting or denying the allegations contained in the Commission's complaint, filed March 24, 2010 in the district court, Walter consented to and is ordered to pay $85,353 in disgorgement of illegal proceeds gained from an insider trading ring involving two securities professionals, one of whom is Aleksey Koval (Koval), Walter's husband, a defendant in the action.
The Commission's complaint alleges that from at least July 2005 through Feb. 2009, Igor Poteroba, an investment banker with UBS Securities LLC, misappropriated highly confidential inside information from his employer about eleven impending acquisitions, tender offers, or other business combinations. Poteroba tipped Koval, another securities professional, who then traded securities on the basis of the tipped information. The Commission also alleged that Koval, in turn, tipped defendant Alexander Vorobiev, who also traded on the material, nonpublic information. Concerning Walter, the complaint asserts that Koval deposited proceeds from the illegal insider trading scheme in Walter's account, and, in advance of at least one transaction on which he had been tipped by Poteroba, he effected trades directly in her account. [SEC v. Igor Poteroba, Aleksey Koval, Alexander Vorobiev, and Relief Defendants Tatiana Vorobieva and Anjali Walter, Civil Action No. 10-civ-2667 (AKH)] (LR-21730)
INVESTMENT COMPANY ACT RELEASES
Van Eck Associates Corporation, Market Vectors ETF Trust and Van Eck Securities Corporation
An order has been issued on an application filed by Van Eck Associates Corporation, Market Vectors ETF Trust and Van Eck Securities Corporation. The order permits (a) series of certain open-end management investment companies to issue shares (Shares) redeemable in large aggregations only (Creation Units); (b) secondary market transactions in Shares to occur at negotiated market prices; (c) certain series to pay redemption proceeds, under certain circumstances, more than seven days from the tender of Shares for redemption; (d) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of Creation Units; and (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire Shares. (Rel. IC-29496 - November 3)
Proposed Plan for the Allocation of Regulatory Responsibilities Pursuant to Rule 17d-2 Relating to Regulation NMS Rules
BATS Exchange, BATS Y-Exchange, Chicago Board Options Exchange, Chicago Stock Exchange, EDGA Exchange, EDGX Exchange, Financial Industry Regulatory Authority, The NASDAQ Stock Market, NASDAQ OMX BX, NASDAQ OMX PHLX National Stock Exchange, New York Stock Exchange, NYSE Amex, and NYSE Arca. filed with the Commission a proposed plan for the allocation of regulatory responsibilities pursuant to Rule 17d-2 under the Securities Exchange Act of 1934 (File No. 4-618). Publication is expected in the Federal Register during the week of November 8. (Rel. 34-63230)
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