SEC News Digest

ENFORCEMENT PROCEEDINGS

In the Matter of Leonardo Maceiras Jr.

On November 26, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act 1934, Making Findings and Imposing Remedial Sanctions (Order) against Leonardo Maceiras, Jr. (Maceiras, Jr.). The Order finds that Maceiras is a principal and owner of U.S. Pension Trust (USPT) and U.S. College Trust (USCT), which are Florida corporations that have operated as sales and marketing companies since 1995. USPT and USCT have never been registered as or with a licensed broker-dealer.

On Sept. 30, 2010, a final judgment was entered against Maceiras, Jr., permanently enjoining him from future violations of Sections 15(a)(1) and 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933, in the civil action entitled SEC v. U.S. Pension Trust Corp., et al., Civil Action Number 07-CV-22570, in the United States District Court for the Southern District of Florida. The Court ordered Maceiras, Jr. to pay $674,567 in disgorgement, plus prejudgment interest, and a $200,000 civil penalty.

The Commission's complaint alleged that since their inception, USPT and USCT have acted as broker-dealers by actively soliciting investors to purchase mutual funds, regularly participating in securities transactions, advising as to the merits of mutual fund investments, and receiving commissions and transaction-based compensation, and that Maceiras, Jr. aided and abetted USPT and USCT's conduct as unregistered broker-dealers. Based on the above, the Order bars Leonardo Maceiras, Jr. from association with any broker or dealer. Maceiras Jr. consented to the issuance of the Order without admitting or denying any of the findings except as to the entry of the Final Judgment. (Rel. 34-63377; File No. 3-14140)

In the Matter of Iliana Maceiras

On November 26, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act 1934, Making Findings and Imposing Remedial Sanctions (Order) against Iliana Maceiras (Maceiras). The Order finds that Maceiras is a principal and owner of U.S. Pension Trust Corp. (USPT) and U.S. College Trust Corp. (USCT), which are Florida corporations that have operated as sales and marketing companies since 1995. USPT and USCT have never been registered as or with a licensed broker-dealer.

On Sept. 30, 2010, a final judgment was entered against Maceiras, permanently enjoining her from future violations of Sections 15(a)(1) and 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933, in the civil action entitled SEC v. U.S. Pension Trust Corp., et al., Civil Action Number 07-CV-22570, in the United States District Court for the Southern District of Florida. The Court ordered Maceiras to pay $1,093,364 in disgorgement, plus prejudgment interest, and a $200,000 civil penalty.

The Commission's complaint alleged, among other things, that since their inception, USPT and USCT have acted as broker-dealers by actively soliciting investors to purchase mutual funds, regularly participating in securities transactions, advising as to the merits of mutual fund investments, and receiving commissions and transaction-based compensation, and that Maceiras aided and abetted USPT and USCT's conduct as unregistered broker-dealers.

Based on the above, the Order bars Iliana Maceiras from association with any broker or dealer. Maceiras consented to the issuance of the Order without admitting or denying any of the findings except as to the entry of the Final Judgment. (Rel. 34-63378; File No. 3-14141)

In the Matter of Nildo Verdeja

On November 26, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act 1934, Making Findings and Imposing Remedial Sanctions (Order) against Nildo Verdeja (Verdeja). The Order finds that Verdeja is a principal and owner of U.S. Pension Trust (USPT) and U.S. College Trust (USCT), which are Florida corporations that have operated as sales and marketing companies since 1995. USPT and USCT have never been registered as or with a licensed broker-dealer.

On Sept. 30, 2010, a final judgment was entered against Verdeja, permanently enjoining him from future violations of Sections 15(a)(1) and 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933, in the civil action entitled SEC v. U.S. Pension Trust Corp., et al., Civil Action Number 07-CV-22570, in the United States District Court for the Southern District of Florida. The Court ordered Verdeja to pay $993,515 in disgorgement, plus prejudgment interest, and a $200,000 civil penalty.

The Commission's complaint alleged, among other things, that since their inception, USPT and USCT have acted as broker-dealers by actively soliciting investors to purchase mutual funds, regularly participating in securities transactions, advising as to the merits of mutual fund investments, and receiving commissions and transaction-based compensation, and that Verdeja aided and abetted USPT and USCT's conduct as unregistered broker-dealers.

Based on the above, the Order bars Nildo Verdeja from association with any broker or dealer. Verdeja consented to the issuance of the Order without admitting or denying any of the findings except as to the entry of the Final Judgment. (Rel. 34-63379; File No. 3-14142)

In the Matter of Mid-American Waste Systems, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in Mid-American Waste Systems, Inc., Administrative Proceeding No. 3-14109. The Order Instituting Proceedings (OIP) alleged that seven 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 of the OIP to be true and revokes the registrations of each class of registered securities of Mid-American Waste Systems, Inc., Midwest Energy Companies, Inc., Mimbres Valley Farmers Association, Inc., MRL, Inc., MTX International, Inc., Multiple Dimensional Laser Technologies, Inc., and Muse Technologies, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-63380; File No. 3-14109)

Sherwin Brown, Jamerica Financial, Inc., Sanctioned

Sherwin Brown (Brown), formerly of St. Paul, Minnesota, and Jamerica Financial, Inc. (Jamerica), an investment adviser controlled by Brown, have been barred from association with any investment adviser, and Jamerica's registration as an investment adviser has been revoked. The sanctions were ordered in an administrative proceeding before an administrative law judge, following a court-ordered injunction against them. In May 2010, Brown and Jamerica were enjoined from violating the antifraud and other provisions of the federal securities laws. The wrongdoing that underlies the injunction occurred between 2004 and 2006 in connection with an investment vehicle organized by Brown, Brawta Ventures, LLC. (Initial Decision No. 408; File No. 3-13908)

In the Matter of Dennis H. Johnston, Esq.

The Securities and Exchange Commission announced that it issued an Order of Suspension against Dennis H. Johnston, Esq. pursuant to Rule 102(e)(2) of the Commission's Rules of Practice. Johnston is a former member of the California Bar who has appeared and practiced before the Commission. The Commission's Order found that, on Dec. 15, 2009, the California Supreme Court disbarred Johnston because he had engaged in multiple violations of the California Rules of Professional Conduct. The Commission's Order suspended Johnston immediately from appearing or practicing before the Commission. (Rel. 34-63384; File No. 3-14143)

SELF-REGULATORY ORGANIZATIONS

Proposed Rule Changes

NASDAQ OMX PHLX filed a proposed rule change (SR-Phlx-2010-163) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 relating to obvious errors respecting complex trades. Publication is expected in the Federal Register during the week of November 29. (Rel. 34-63367)

The Financial Industry Regulatory Authority filed a proposed rule change (SR-FINRA-2010-061) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to adopt FINRA Rules governing guarantees, carrying agreements, security counts and supervision of general ledger accounts in the Consolidated FINRA Rulebook. Publication is expected in the Federal Register during the week of November 29. (Rel. 34-63375)

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NASDAQ OMX PHLX relating to PIXL fees (SR-Phlx-2010-162) 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 November 29. (Rel. 34-63372)

A proposed rule change filed by Financial Industry Regulatory Authority (SR-FINRA-2010-057) to permit a one-time waiver of late fees assessable pursuant to FINRA Rule 6490 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 November 29. (Rel. 34-63373)

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http://www.sec.gov/news/digest/2010/dig112910.htm