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ENFORCEMENT PROCEEDINGSDelinquent Filers' Stock Registrations RevokedThe registrations of the registered securities of Enter Tech Corp., Entertainment Trends Corp. (f/k/a Daljama, Inc.), Eonnet Media, Inc., eQuorumNet, Esesis, Inc., European American Resources, Inc., and eVision International, Inc., have been revoked. Each had repeatedly failed to file required annual and quarterly reports with the Securities and Exchange Commission. Thus, each violated a crucial provision of the federal securities laws that requires public corporations to publicly disclose current, accurate financial information so that investors may make informed decisions. The revocations were ordered in an administrative proceeding before an administrative law judge. (Rel. 34-63846; File No. 3-14200) In the Matter of Caibs International, Inc.An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Five Respondents (Default Order) in Caibs International, Inc., Admin. Proc. No. 3-14170. The Order Instituting Proceedings alleged that six Respondents repeatedly failed to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission (Commission). The Default Order finds these allegations to be true as to five Respondents and revokes the registrations of each class of registered securities of Caibs International, Inc. (n/k/a Caibs International Holding, Inc.), Caliber Learning Network, Inc. (n/k/a CLN, Inc.), Cel Communications, Inc., Cellular Telephone Enterprises, Inc., and Centrum Industries, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. The proceeding has been stayed as to Respondent Cartoon Acquisition, Inc., while the Commission considers its Offer of Settlement. (Rel. 34-63847; File No. 3-14170) Commission Revokes Registration of Securities of Canadian Mono Mines, Inc. for Failure to Make Required Periodic FilingsOn Feb. 7, 2011, the Commission revoked the registration of each class of registered securities of Canadian Mono Mines, Inc. (Canadian Mono Mines) 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, Canadian Mono Mines 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 Canadian Mono Mines, 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-16 thereunder and revoking the registration of each class of Canadian Mono Mines' securities pursuant to Section 12(j) of the Exchange Act. This Order settled the proceedings brought against Canadian Mono Mines in In the Matter of Canadian Mono Mines, Inc., et al., Administrative Proceeding File No. 3-14203. Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:
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 Canadian Mono Mines, Inc., et al., Administrative Proceeding File No. 3-14203, Exchange Act Release No. 63759, Jan. 24, 2011. (Rel. 34-63848; File No. 3-14203) In the Matter of Eugene C. GeigerOn Feb. 7, 2011, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (Order) against Eugene C. Geiger. The Order finds that, on Jan. 28, 2011, in the federal district court for Colorado a final judgment by consent was entered against Geiger, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Eugene C. Geiger, Civil Action Number 10-CV-00128 (D. Nev.)(consolidated with Civ. A. No. 10-CV-00129). In the Commission's consolidated case, the complaints alleged that, from December 1999 through June 2000, Geiger, a former registered representative of a broker-dealer, knowingly participated in a scheme to manipulate the stock price and trading volume of Absolutefuture.com and Wamex Holdings, Inc., which were penny stocks that traded over-the-counter. Based on the above, the Order bars Geiger from association with any investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. The Order also bars Geiger from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock. Geiger consented to the Order without admitting or denying any of the findings, except that he admitted the entry of the final judgment. (Rel. 34-63849; File No. 3-14232) In the Matter of Alpine Woods Capital Investors, LLC and Samuel A. LeiberOn Feb. 7, 2011, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 203(e), (f) and (k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940, Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order (Order) against Alpine Woods Capital Investors, LLC (Alpine) and Samuel A. Lieber (Lieber). Alpine and Lieber each consented to the issuance of the Order without admitting or denying any of the findings in the Order. In the Order, the Commission finds that, during the period Feb. 1, 2006 through Jan. 31, 2008, Alpine's two smallest funds, the Alpine Dynamic Financial Services Fund (Financial Services Fund) and the Alpine Dynamic Innovators Fund (Innovators Fund), participated in a disproportionate number of initial public offerings (IPOs) compared to Alpine's other existing funds. After receiving IPO shares, the Financial Services Fund and the Innovators Fund sold some or all of the shares within 3 days after their initial purchase. IPO trading by the Financial Services Fund and the Innovators Fund materially contributed to the positive performance of those funds during Alpine's fiscal year ending Oct. 31, 2007. Alpine nonetheless failed to disclose to the Board of Trustees for the Alpine Series Trust or to fund investors the extent to which the Financial Services Fund and the Innovators Fund invested in IPOs and the material impact IPO trading had on the performance of those funds. The Commission also finds that, during the period Feb. 1, 2006 through Jan. 31, 2008, Alpine, through its Chief Executive Officer, Lieber, failed to implement written policies and procedures reasonably designed to prevent violations of the Investment Advisers Act, including policies regarding the allocation of IPO shares. Finally, the Commission finds that Alpine committed, and caused the Alpine Series Trust to commit, books and records violations by failing to make and keep true and accurate order memoranda in connection with the purchase of IPOs. Based on the above, the Commission orders Alpine to cease and desist from committing or causing any violations and any future violations of Section 17(a)(3) of the Securities Act of 1933, Sections 204, 206(2) and (4) of the Investment Advisers Act and Rules 204-2(a)(3), 206(4)-7 and 206(4)-8 thereunder, Section 34(b) of the Investment Company Act, and Rule 31a-1(b)(5) promulgated under Section 31(a) of the Investment Company Act, censures Alpine, and orders Alpine to pay a $650,000 civil penalty. The Commission also orders Lieber to cease and desist from committing or causing any violations or future violations of Section 206(4) of the Investment Advisers Act with respect to Rule 206(4)-7 promulgated thereunder, and orders Lieber to pay a $65,000 civil penalty. (Rels. 33-9182; IA-3154; IC-29575; File No. 3-14233) In the Matter of Robert J. RiddleOn Feb. 7, 2011, 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 Robert Riddle (Riddle). The Order finds that Riddle was Regional Vice President of Sales, East Coast, at Jadis Capital, Inc., a New York corporation. Jadis Capital was the sole owner of Jadis Investments, LLC (Jadis Investments), a Delaware limited liability company and Uniondale, Long Island-based investment adviser registered with the Commission. The Order further finds that Riddle pled guilty to conspiracy to commit securities fraud, in violation of Title 18 United States Code, Section 371 before the United States District Court for the Eastern District of New York. On September 2, a judgment was entered against Riddle. He was sentenced to a prison term of 24 months followed by three years of supervised release and ordered to make restitution in the amount of $3,303,207.99. Based on the above, the Order bars Riddle from association with any investment adviser. Riddle consented to the issuance of the Order without admitting or denying any of the findings in the Order, except for the Commission's jurisdiction over him and the subject matter of the proceedings and his criminal conviction, which he admitted. (Rel. IA-3155; File No. 3-14234) In the Matter of U.S. Pension Trust Corp.On Feb. 7, 2011, 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 U.S. Pension Trust Corp. (USPT). The Order finds that USPT is a Florida corporation that has operated as a sales and marketing company since 1995. USPT has never been registered as or with a licensed broker-dealer. On Sept. 30, 2010, a final judgment was entered against USPT, permanently enjoining it 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 Securities and Exchange Commission 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 USPT to pay $62.6 million in disgorgement, plus prejudgment interest, and a $50 million civil penalty. The Commission's complaint alleged that from 1995 to the present, USPT has operated as an unregistered broker-dealer 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, in violation of the registration provisions of the federal securities laws. Based on the above, the Order bars USPT from association with a broker or dealer. USPT 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. 34-63853; File No. 3-14235) In the Matter of U.S. College TrustOn Feb. 7, 2011, 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 U.S. College Trust Corp. (USCT). The Order finds that USCT is a Florida corporation that has operated as a sales and marketing company since 1995. USCT has never been registered as or with a licensed broker-dealer. On Sept. 30, 2010, a final judgment was entered against USCT, permanently enjoining it 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 Securities and Exchange Commission 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 USCT to pay $62.6 million in disgorgement, plus prejudgment interest, and a $50 million civil penalty. The Commission's complaint alleged that from 1995 to the present, USCT has operated as an unregistered broker-dealer 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, in violation of the registration provisions of the federal securities laws. Based on the above, the Order bars USCT from acting as a broker or dealer. USCT 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. 34-63854; File No. 3-14236) Gregg Adams SanctionedGregg Adams (G. Adams) has been barred from association with a broker-dealer and from participating in an offering of penny stock and ordered to cease and desist from committing, causing, or aiding and abetting violations of the antifraud provisions of the securities laws. The sanctions were ordered in an administrative proceeding before an administrative law judge. G. Adams's wrongdoing occurred in connection with the securities of Americom Networks International, Inc. (Americom), while he was associated with Preston Langley Asset Management (Preston Langley), a broker-dealer. He and others at Preston Langley used fraudulent means to sell Americom stock to customers at inflated prices. Their practices included high pressure sales tactics, a "no net selling" policy, unauthorized purchases in customer accounts, false claims of inside information, and predictions about Americom's future stock price based on misrepresentations and omissions. G. Adams has also been convicted of securities fraud in a parallel criminal proceeding arising out of the same facts at issue in the administrative proceeding. He was sentenced to time served, followed by three years of supervised release, and ordered to pay $5,000,000 in restitution. (Rel. 33-9183, 34-63850; File No. 3-10624) In the Matter of the Registration Statement of Sahas Technologies LLCOn Feb. 7, 2011, the Commission issued an Order Fixing Time and Place of Public Hearing and Instituting Proceedings Pursuant to Section 8(d) of the Securities Act of 1933 to determine whether a stop order should issue suspending the effectiveness of a registration statement filed on Jan. 20, 2011 by Sahas Technologies LLC. The Division of Enforcement alleges that the registration statement omits certain material facts required by SEC forms and regulations governing the offer and sale of securities to the public. In particular, the Division of Enforcement alleges that the registration statement is materially deficient in that it fails to include audited financial statements meeting the requirements of Regulation S-X and various items required by Regulation S-K, such as Item 303 (management's discussion and analysis). A hearing will be held on Feb. 22, 2011 before an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondent an opportunity to establish any defenses to these allegations, and to determine whether a stop order should issue suspending the effectiveness of the Sahas registration statement. The Order requires the Administrative Law Judge to issue an initial decision no later than 120 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rel. 33-9184; File No. 3-14237) SEC Files Settled Injunctive Action Against William J. Reid, Algorithmic Trading Advisors, LLC and World Stock Fund, L.P.The Securities and Exchange Commission announced the filing of a complaint in federal district court against William J. Reid (Reid), Algorithmic Trading Advisors, LLC (ATA) and World Stock Fund, L.P. (WSF), alleging unregistered fraudulent offer and sale of WSF's securities through WSF's adviser ATA. The complaint alleges that Reid established accounts for WSF with well-known investment reporting services and provided those services with materially false information concerning WSF's investment returns and the size of its fund. The materially false information included representations that WSF had positive returns in 30 out of 37 months from the period of January 2007 through January 2010 and that WSF had up to $13 million in assets under management. In fact, WSF did not exist until June 2008 and had less than $400,000 in assets under management. On Feb. 3, 2011, the United States District Court for the Southern District of Georgia entered final judgments against Reid, ATA and WSF. Reid and ATA were enjoined 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 and Rule 10b-5 thereunder, Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Reid and ATA were ordered to disgorge $15,252.62 representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest of $619.66 and ordered to pay a civil penalty of $5,000. WSF was enjoined from future violations of Sections 5(a) and 5(c) of the Securities Act and Section 7(a) of the Investment Company Act of 1940. Reid, WSF and ATA consented to the entry of the final judgments without admitting or denying any of the allegations in the Complaint. [SEC v. William J. Reid, Algorithmic Trading Advisors, LLC and World Stock Fund, L.P., Civil No. 4:11-cv-0016 (USDC S.D. Georgia)] (LR-21840) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change filed by the EDGA Exchange (SR-EDGA-2011-02) relating to amendments to the EDGA Exchange, Inc. 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 February 7. (Rel. 34-63820) A proposed rule change (SR-CBOE-2011-011) filed by the Chicago Board Options Exchange to modify the Fees Schedule for its CBOE Stock Exchange 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 February 7. (Rel. 34-63831) A proposed rule change filed by The NASDAQ Stock Market (SR-NASDAQ-2011-004) to amend Rule 4758 to add a new routing option, LIST, 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 February 7. (Rel. 34-63836) A proposed rule change filed by the EDGX Exchange (SR-EDGX-2011-03) relating to amendments to the EDGX Exchange, Inc. 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 February 7. (Rel. 34-63837) A proposed rule change filed by NASDAQ OMX PHLX to modify fees for NASDAQ OMX PSX (SR-Phlx-2011-11) 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 February 7. (Rel. 34-63838) A proposed rule change filed by the EDGA Exchange (SR-EDGA-2011-03) relating to amendments to the EDGA Exchange, Inc. 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 February 7. (Rel. 34-63839) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2011/dig020711.htm
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