Closed Meeting on Thursday, April 21, 2011 at 2:00 p.m.
The subject matter of the Closed Meeting scheduled for Thursday, April 21, 2011 will be: institution and settlement of injunctive actions; institution and settlement of administrative proceedings; an adjudicatory matter; and other matters relating to enforcement proceedings.
At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.
In the Matter of James J. Konaxis
On April 13, 2011, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order) against James J. Konaxis. The Order finds that on April 5, 2011, a judgment was entered by consent against Konaxis, 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, and barring him from participating in an offering of penny stock, in the civil action entitled Securities and Exchange Commission v. James J. Konaxis, Civil Action Number 1:11-cv-10489, in the United States District Court for the District of Massachusetts. In particular, the Commission’s complaint alleged that Konaxis, while associated with registered broker-dealer Sentinel, defrauded one of his largest individual customers by repeatedly churning at least three of the customer’s brokerage accounts.
Based on the above, the Order bars Konaxis from association with any broker, dealer, investment adviser, municipal securities dealer, or transfer agent. Konaxis consented to the issuance of the Order without admitting or denying any of the findings, except he admitted the entry of the injunction. (Rels. 34-64298; IA-3187; File No. 3-14341)
SEC Charges Subprime Auto Loan Lender and Executives With Fraud
The Securities and Exchange Commission announced that it filed a civil injunctive action today in federal district court in Massachusetts charging Massachusetts-based subprime auto loan provider Inofin Inc. and three company executives with misleading investors about their lending activities and diverting millions of dollars in investor funds for their personal benefit. The SEC also charged two sales agents with illegally offering to sell company securities without being registered with the SEC as broker-dealers.
The SEC alleges that Inofin executives Michael Cuomo of Plymouth, Mass., Kevin Mann of Marshfield, Mass., and Melissa George of Duxbury, Mass., illegally raised at least $110 million from hundreds of investors in 25 states and the District of Columbia through the sale of unregistered notes. Investors in the notes were told that Inofin would use the money for the sole purpose of funding subprime auto loans. As part of the pitch, Inofin and its executives told investors that they could expect to receive returns of 9 to 15 percent because Inofin loaned investor money to its subprime borrowers at an average rate of 20 percent. But unbeknownst to investors, and starting in 2004, approximately one-third of investor money raised was instead used by Cuomo and Mann to open four used car dealerships and begin multiple real estate property developments for their own benefit.
Inofin is not registered with the SEC to offer securities to investors.
According to the SEC’s complaint filed in federal court in Boston, Inofin and the executives materially misrepresented Inofin’s financial performance beginning as early as 2006 and continuing through 2011. Inofin had a negative net worth and a progressively deteriorating financial condition caused not only by the failure of Inofin’s undisclosed business activities, but also by management’s decisions in 2007, 2008, and 2009 to sell some of its auto loan portfolio at a substantial discount to solve ever-increasing cash shortages that Inofin concealed from investors. Nonetheless, Inofin and its principal officers continued to offer and sell Inofin securities while knowingly or recklessly misrepresenting to investors that Inofin was a profitable business and sound investment.
The SEC further alleges that beginning in 2006 and continuing to April 2010, Inofin’s executives defrauded investors while maintaining Inofin’s license to do business as a motor vehicle sales finance company by preparing and submitting materially false financial statements to its licensing authority, the Massachusetts Division of Banks. The SEC’s complaint charges Cuomo, Mann, and George with violating the antifraud and registration provisions of the federal securities laws, and seeks civil injunctions, the return of ill-gotten gains plus prejudgment interest, and financial penalties.
The SEC’s charges against the two sales agents – David Affeldt and Thomas K. (Kevin) Keough – allege that they promoted the offering and sale of Inofin’s unregistered securities. They were unjustly enriched with more than $500,000 in referral fees between 2004 and 2009. Affeldt and Keough are charged with selling the unregistered Inofin securities and failing to register with the SEC as a broker-dealer, and the SEC seeks civil injunctions, the return of ill-gotten gains plus prejudgment interest, and financial penalties. Keough’s wife Nancy Keough is named in the complaint as a relief defendant for the purposes of recovering proceeds she received as a result of the violations.
The Commission’s complaint alleges that Inofin, Cuomo, Mann, and George violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and that Kevin Keough, and David Affeldt violated Sections 5(a), and 5(c) of the Securities Act and Section 15(a) of the Exchange Act. The Commission seeks the entry of a permanent injunction, disgorgement of ill-gotten gains plus pre-judgment interest, and the imposition of civil monetary penalties against Inofin, Cuomo, Mann, George, Kevin Keough, and David Affeldt. Keough’s wife Nancy Keough is named in the complaint as a relief defendant for the purposes of recovering proceeds she received as a result of the violations. [SEC v. Inofin, Inc., Michael J. Cuomo, Kevin J. Mann, Sr., Melissa George, Thomas Kevin Keough, David Affeldt, and Nancy Keough, 1:11-CV-10633 (D. Mass.)] (LR-21929)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2011-53) to amend Option Floor Procedures Advice F-14 regarding executing hedge and synthetic options orders containing stock components 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 April 11, 2011. (Rel. 34-64294)
A proposed rule change filed by the New York Stock Exchange (SR-NYSE-2011-14) to alter Listing Fees Applicable to Debt Securities and Structured Products 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 April 11, 2011. (Rel. 34-64299)
The following registration statements have been filed with the SEC under the Securities Act of 1933. The reported information appears as follows: Form, Name, Address and Phone Number (if available) of the issuer of the security; Title and the number and/or face amount of the securities being offered; Name of the managing underwriter or depositor (if applicable); File number and date filed; Assigned Branch; and a designation if the statement is a New Issue.
Registration statements may be viewed in person in the Commission's Public Reference Branch at 100 F Street, N.E., Washington, D.C. To obtain paper copies, please refer to information on the Commission's Web site at http://www.sec.gov/answers/publicdocs.htm. In most cases, you can view and download this information by using the search function located at http://www.sec.gov/edgar/searchedgar/companysearch.html.
S-8 CARNIVAL CORP, 3655 N W 87TH AVE, PO BOX 1347, MIAMI, FL, 33178-2428, 3055992600 - 15,000,000 ($65,567.48) Equity, (File 333-173465 - Apr. 13) (BR. 05A) S-8 TWO RIVERS WATER Co, 2000 S COLORADO BLVD., ANNEX STE 420, DENVER, CO, 80222, 303-222-1000 - 452,362 ($565,452.50) Equity, (File 333-173466 - Apr. 13) (BR. 09A) S-3ASR Pebblebrook Hotel Trust, 2 BETHESDA METRO CENTER, SUITE 1530, BETHESDA, MD, 20814, 240-507-1300 - 0 ($0.00) Unallocated (Universal) Shelf, (File 333-173468 - Apr. 13) (BR. 08B) S-8 Rockville Financial, Inc. /CT/, 1645 ELLINGTON ROAD, SOUTH WINDSOR, CT, 06074, 860-291-3600 - 0 ($12,769,133.95) Equity, (File 333-173469 - Apr. 13) (BR. 07)
Form 8-K is used by companies to file current reports on the following events:
8-K reports may be viewed in person in the Commission's Public Reference Branch at 100 F Street, N.E., Washington, D.C. To obtain paper copies, please refer to information on the Commission's Web site at http://www.sec.gov/answers/publicdocs.htm. In most cases, you can view and download this information by using the search function located at http://www.sec.gov/edgar/searchedgar/companysearch.html.
STATE NAME OF ISSUER CODE 8K ITEM NO. DATE COMMENT 3Power Energy Group Inc. NV 8.01 04/13/11 Addus HomeCare Corp DE 8.01,9.01 04/13/11 Adelman Enterprises, Inc. DE 1.01,9.01 04/11/11 ADTRAN INC DE 2.02,9.01 04/12/11 Alamo Energy Corp. NV 1.01,2.01,2.03,3.02, 04/12/11 7.01,9.01 ALEXION PHARMACEUTICALS INC DE 5.05,9.01 04/10/11 Allezoe Medical Holdings Inc DE 8.01,9.01 04/07/11 ALLIANCE FINANCIAL CORP /NY/ NY 2.02,9.01 04/13/11 Ally Financial Inc. DE 8.01,9.01 04/13/11 AMERICAN LITHIUM MINERALS, INC. 5.02 04/06/11 AmeriCredit Automobile Receivables Tr 8.01,9.01 04/13/11 ANAVEX LIFE SCIENCES CORP. NV 1.01,3.02,9.01 03/30/11 ANWORTH MORTGAGE ASSET CORP MD 8.01,9.01 04/13/11 ARETE INDUSTRIES INC CO 8.01,9.01 04/13/11 Armour Residential REIT, Inc. MD 8.01,9.01 04/13/11 ASTORIA FINANCIAL CORP DE 5.02 03/16/11 AvStar Aviation Group, Inc. CO 1.01,2.03,3.02 04/19/10 Bank of Commerce Holdings CA 5.02,9.01 04/13/11 BANKATLANTIC BANCORP INC FL 3.01 04/06/11 Banyan Rail Services Inc. DE 1.01,2.03,9.01 04/07/11 BE Resources Inc. CO 7.01,9.01 04/12/11 Behringer Harvard Opportunity REIT I, MD 1.01,2.03 04/11/11 BERRY PETROLEUM CO DE 1.01,2.03,9.01 04/13/11 BIGLARI HOLDINGS INC. IN 5.07 04/07/11 BJs RESTAURANTS INC CA 8.01,9.01 04/13/11 BRIGHAM EXPLORATION CO DE 5.02 04/07/11 BROCADE COMMUNICATIONS SYSTEMS INC DE 5.07 04/12/11 Brooklyn Federal Bancorp, Inc. X1 5.02,9.01 04/07/11 Buckingham Exploration Inc. 1.02 04/08/11 CAMAC Energy Inc. DE 1.01,5.02,5.03,9.01 04/12/11 CBIZ, Inc. DE 1.01,9.01 04/11/11 Celanese CORP DE 7.01,9.01 04/13/11 CENTURY BANCORP INC MA 2.02,9.01 04/13/11 CHASE CORP MA 2.02,9.01 04/07/11 CHESAPEAKE ENERGY CORP OK 7.01,9.01 04/11/11 China Marketing Media Holdings, Inc. TX 4.01,8.01,9.01 04/13/11 China MediaExpress Holdings, Inc. DE 5.02,9.01 03/11/11 CLEAN DIESEL TECHNOLOGIES INC DE 1.01,2.03,3.02,8.01, 04/11/11 9.01 Cogdell Spencer Inc. MD 5.02,9.01 04/07/11 Congaree Bancshares Inc SC 1.02,8.01,9.01 04/12/11 CONVERSION SERVICES INTERNATIONAL INC DE 1.01,9.01 04/07/11 Copano Energy, L.L.C. 8.01,9.01 04/13/11 CORELOGIC, INC. DE 8.01 04/11/11 CPI CORP DE 9.01 01/26/11 AMEND CRIMSON EXPLORATION INC. 8.01,9.01 04/11/11 CVR ENERGY INC DE 1.01,2.03,8.01,9.01 04/07/11 CVR PARTNERS, LP DE 1.01,2.03,3.02,3.03, 04/07/11 5.01,5.02,5.03,9.01 diaDexus, Inc. DE 1.01 04/08/11 DIGUANG INTERNATIONAL DEVELOPMENT CO. NV 1.01 04/12/11 Discover Card Execution Note Trust DE 1.01,8.01,9.01 04/13/11 DOLLAR FINANCIAL CORP DE 1.01,9.01 04/07/11 DRUGSTORE COM INC DE 5.02,8.01,9.01 04/08/11 EAGLE ROCK ENERGY PARTNERS L P DE 1.01,3.02,7.01,9.01 04/12/11 EAGLE ROCK ENERGY PARTNERS L P DE 7.01,9.01 04/12/11 EDEN ENERGY CORP NV 1.01,5.02,9.01 04/01/11 ELECTRONICS FOR IMAGING INC DE 5.02,9.01 04/13/11 Emrise CORP DE 7.01,9.01 04/13/11 ENB Financial Corp PA 2.02,9.01 04/12/11 Encore Energy Partners LP DE 1.01,9.01 04/13/11 ENER1 INC FL 5.02,9.01 04/08/11 Energy Future Holdings Corp /TX/ TX 1.01 04/12/11 ENSURGE INC NV 4.02,9.01 04/13/11 AMEND ENTECH SOLAR, INC. DE 1.01,3.02,5.02 04/13/11 ESSA Bancorp, Inc. PA 7.01,9.01 04/12/11 ESSEX PROPERTY TRUST INC MD 1.01,3.03,5.03,8.01, 04/08/11 9.01 Federal Home Loan Bank of Dallas 2.03,9.01 04/07/11 FEMALE HEALTH CO WI 7.01,9.01 04/13/11 FIRST CITIZENS BANCSHARES INC /TN/ TN 2.02,9.01 04/13/11 FIRST COMMUNITY FINANCIAL CORP PA 5.07 04/12/11 FIRST DATA CORP DE 1.01,2.03,9.01 04/13/11 FIRST M&F CORP/MS MS 7.01,9.01 04/13/11 FIRST OTTAWA BANCSHARES INC DE 7.01,9.01 04/13/11 FIRST SOLAR, INC. DE 5.02 04/13/11 FLM Minerals Inc. NV 4.01,9.01 04/13/11 FOREST LABORATORIES INC DE 2.01,9.01 04/11/11 GenOn Energy, Inc. DE 7.01,9.01 04/13/11 GEOSPATIAL HOLDINGS, INC. NV 1.01,3.02,5.02,7.01, 04/11/11 9.01 Global Pharm Holdings Group, Inc. DE 1.01,2.01,3.02,4.01, 08/12/10 AMEND 5.03,5.06,9.01 GLOBECOMM SYSTEMS INC 1.01,2.01,2.03,9.01 04/07/11 GMX RESOURCES INC OK 5.02,7.01,9.01 04/07/11 GOLDMAN SACHS GROUP INC DE 9.01 04/13/11 Golub Capital BDC, Inc. DE 2.02,9.01 04/13/11 Graham Packaging Co Inc. DE 8.01,9.01 04/13/11 Grand Canyon Education, Inc. DE 1.01,2.03,8.01 04/12/11 GRANT PARK FUTURES FUND LIMITED PARTN IL 7.01 04/13/11 Graystone Co DE 5.07 04/09/11 Graystone Co DE 9.01 04/13/11 Great Lakes Dredge & Dock CORP DE 8.01,9.01 04/13/11 GREENBRIER COMPANIES INC DE 8.01,9.01 04/13/11 Hartman Short Term Income Properties MD 4.02 04/13/11 HCP, INC. MD 1.01,2.01,7.01,9.01 04/07/11 HEALTH DISCOVERY CORP 2Q 5.02,8.01 04/07/11 HEIDRICK & STRUGGLES INTERNATIONAL IN DE 5.02,9.01 12/14/10 AMEND Home Federal Bancorp, Inc. of Louisia LA 7.01,9.01 04/13/11 Homeowners Choice, Inc. FL 5.02 04/09/11 HOOKER FURNITURE CORP VA 2.02,9.01 04/12/11 HQ SUSTAINABLE MARITIME INDUSTRIES, I DE 3.01,8.01,9.01 04/11/11 IASIS Healthcare LLC DE 8.01 04/13/11 INFOSPACE INC DE 1.01,5.02,9.01 04/11/11 INHIBITEX, INC. DE 5.02,9.01 04/12/11 Inland Diversified Real Estate Trust, MD 9.01 04/13/11 AMEND INTEGRA BANK CORP IN 7.01,9.01 04/11/11 INTEL CORP DE 7.01,9.01 04/13/11 INTERPLAY ENTERTAINMENT CORP DE 4.01,9.01 04/12/11 IPAYMENT INC DE 8.01,9.01 04/12/11 IRELAND INC. NV 8.01,9.01 04/08/11 J P MORGAN CHASE & CO DE 2.02,9.01 04/13/11 J P MORGAN CHASE & CO DE 7.01,9.01 04/13/11 JEFFERIES GROUP INC /DE/ DE 1.01,9.01 04/08/11 JEFFERIES GROUP INC /DE/ DE 1.01,9.01 04/08/11 Kallo Inc. NV 5.06,9.01 04/12/11 Kennedy-Wilson Holdings, Inc. DE 1.01,2.03,9.01 04/12/11 LAKELAND FINANCIAL CORP IN 5.02,5.07 04/12/11 LAKELAND FINANCIAL CORP IN 7.01 04/12/11 LEFT BEHIND GAMES INC. WA 7.01,9.01 04/13/11 LEGEND INTERNATIONAL HOLDINGS INC DE 7.01 04/08/11 Lender Processing Services, Inc. DE 8.01 04/12/11 Lender Processing Services, Inc. DE 1.01,9.01 04/12/11 Liberator, Inc. FL 9.01 01/27/11 AMEND LITTELFUSE INC /DE DE 2.02,9.01 04/13/11 MAGNUM HUNTER RESOURCES CORP DE 8.01,9.01 04/13/11 MAINLAND RESOURCES INC. 7.01,9.01 04/13/11 MARTIN MIDSTREAM PARTNERS LP DE 9.01 04/13/11 McCormick & Schmicks Seafood Restaura 8.01,9.01 04/13/11 MedQuist Holdings Inc. DE 2.02,7.01,9.01 04/13/11 Mellanox Technologies, Ltd. L3 5.02 04/13/11 MERRILL LYNCH MUNICIPAL ABS INC NY 9.01 04/01/11 Merriman Holdings, Inc DE 2.03,3.02,9.01 04/07/11 MGM Resorts International DE 3.02,8.01,9.01 04/13/11 MICHAEL BAKER CORP PA 5.02 04/08/11 Midway Gold Corp A1 7.01,9.01 04/08/11 MOHEGAN TRIBAL GAMING AUTHORITY 2.02,9.01 04/13/11 MOSAIC CO DE 8.01,9.01 04/08/11 Motorola Solutions, Inc. DE 1.01 04/12/11 Motors Liquidation Co DE 7.01,9.01 04/07/11 MPG Office Trust, Inc. MD 8.01,9.01 04/12/11 NATIONAL PENN BANCSHARES INC PA 1.01,7.01 04/13/11 NATIONAL TECHNICAL SYSTEMS INC /CA/ CA 5.02,9.01 04/07/11 Neuralstem, Inc. DE 7.01,9.01 04/12/11 Noble Corp / Switzerland V8 7.01,9.01 04/13/11 NORTEL NETWORKS CORP 8.01 04/13/11 NORTH BAY RESOURCES INC DE 1.01,2.01,9.01 04/07/11 NORTHERN TECHNOLOGIES INTERNATIONAL C DE 2.02,9.01 04/13/11 NORTHWEST BIOTHERAPEUTICS INC DE 1.01 04/13/11 NORTHWESTERN CORP DE 8.01,9.01 04/13/11 OCZ TECHNOLOGY GROUP INC DE 1.01,9.01 04/07/11 Orbitz Worldwide, Inc. DE 5.02,9.01 04/07/11 AMEND ORIENT EXPRESS HOTELS LTD D0 2.02,9.01 04/13/11 PARK OHIO HOLDINGS CORP OH 1.01,2.03,5.02,9.01 04/07/11 PARKWAY PROPERTIES INC MD 1.01,3.02,5.02,8.01, 04/10/11 9.01 PEOPLES LIBERATION INC DE 1.01 04/07/11 POPE RESOURCES LTD PARTNERSHIP DE 8.01,9.01 04/13/11 PPL Corp 1.01,9.01 04/11/11 Pzena Investment Management, Inc. DE 8.01,9.01 03/31/11 RADIANT SYSTEMS INC GA 5.02 03/25/11 AMEND RADIANT SYSTEMS INC GA 5.02 02/25/11 AMEND Raptor Pharmaceutical Corp DE 5.02,8.01,9.01 04/11/11 RICKS CABARET INTERNATIONAL INC TX 8.01,9.01 04/10/11 Riverbed Technology, Inc. DE 2.02,9.01 04/12/11 SENSUS (BERMUDA 2) LTD D0 8.01,9.01 04/12/11 SILGAN HOLDINGS INC DE 8.01,9.01 04/13/11 SL GREEN REALTY CORP MD 1.01,9.01 04/13/11 SLM Student Loan Trust 2003-14 DE 8.01,9.01 04/12/11 SLM Student Loan Trust 2004-1 DE 8.01,9.01 04/12/11 SLM Student Loan Trust 2004-5 DE 8.01,9.01 04/12/11 SOLAR ACQUISITION CORP. FL 1.01,2.01,3.02,5.01, 04/06/11 9.01 SOLAR ACQUISITION CORP. FL 5.02 04/06/11 Solar Energy Initiatives, Inc. DE 5.02 04/12/11 SONIC FOUNDRY INC MD 3.01,9.01 04/07/11 SOUTHCOAST FINANCIAL CORP SC 4.01,9.01 04/05/11 AMEND SPARTON CORP OH 5.02 04/10/11 SPECIALTY CONTRACTORS, INC. NV 8.01,9.01 04/13/11 Spirit AeroSystems Holdings, Inc. DE 1.01,8.01,9.01 04/07/11 STATE BANK FINANCIAL CORP GA 8.01,9.01 04/13/11 STELLAR PHARMACEUTICALS INC 7.01,9.01 04/12/11 StellarOne CORP VA 8.01,9.01 04/13/11 Strategic Storage Trust, Inc. MD 7.01,9.01 04/13/11 STUDIO ONE MEDIA, INC. DE 8.01,9.01 04/07/11 SUNLINK HEALTH SYSTEMS INC OH 7.01,9.01 04/08/11 SupportSave Solutions Inc 3.02 04/11/11 TAKEDOWN ENTERTAINMENT INC. NV 7.01 03/18/11 TEL INSTRUMENT ELECTRONICS CORP NJ 8.01 04/13/11 TELKONET INC UT 1.01,3.02,5.03,9.01 03/30/11 TESSERA TECHNOLOGIES INC DE 5.03,9.01 04/13/11 TIDEWATER INC DE 8.01,9.01 04/11/10 TIER TECHNOLOGIES INC DE 5.07 04/12/11 UNIGENE LABORATORIES INC DE 1.01,9.01 04/07/11 United eSystems, Inc. NV 1.01,3.02,9.01 04/08/11 UNIVERSAL FOREST PRODUCTS INC MI 2.02,9.01 04/13/11 Unum Group DE 8.01,9.01 04/12/11 USA REAL ESTATE INVESTMENT TRUST /CA CA 1.01 04/07/11 Vanity Events Holding, Inc. DE 1.01,2.03,3.02,5.02, 04/06/11 9.01 Verisk Analytics, Inc. DE 8.01 04/12/11 VirnetX Holding Corp DE 5.02 04/07/11 VSE CORP DE 8.01 04/08/11 W R GRACE & CO DE 5.02,9.01 04/08/11 WAUSAU PAPER CORP. WI 8.01,9.01 04/13/11 WEIKANG BIO-TECHNOLOGY GROUP CO., INC NV 5.02 04/07/11 Western Refining, Inc. DE 7.01,9.01 04/12/11 WESTWOOD ONE INC /DE/ DE 2.02,9.01 04/13/11 WINMARK CORP MN 2.02,7.01,9.01 04/13/11 WMS INDUSTRIES INC /DE/ DE 2.02,9.01 04/11/11 WYNN RESORTS LTD 7.01,9.01 04/12/11 XCEL ENERGY INC MN 8.01 04/11/11 XFONE INC. NV 8.01,9.01 04/12/11 Xsovt Brands, Inc. NV 9.01 01/26/11 AMEND ZBB ENERGY CORP WI 1.01 04/08/11