Enforcement Director Robert Khuzami to Leave SEC
The Securities and Exchange Commission today announced that Enforcement Director Robert Khuzami will leave the agency after nearly four years of leadership. During Mr. Khuzami’s tenure, the Enforcement Division filed scores of significant actions connected to the financial crisis and brought record numbers of cases involving insider trading and misconduct by investment advisers and investment companies.
Among other accomplishments under Mr. Khuzami’s leadership, the Enforcement Division filed its most-ever cases in fiscal years 2011 and 2012 following the most significant restructuring in agency history that streamlined procedures and expedited investigations.
“Rob’s leadership and bold ideas transformed and reinvigorated the enforcement program,” said Chairman Elisse B. Walter. “Under his direction, the Division not only produced record results, but embraced changes that in the years to come will enable the talented staff to better protect investors through increased efficiency, expertise, and strategic focus.”
Mr. Khuzami said, “I have spent half my career in public service, and nowhere is there the level of professionalism, skill, and talent on such a large and coordinated scale as there is in the SEC’s Division of Enforcement. They have inspired me, educated me, and motivated me to do my very best, and for that I am eternally grateful.”
After being named Enforcement Director in February 2009 by former SEC Chairman Mary Schapiro, Mr. Khuzami prioritized the Enforcement Division’s effort to pursue financial crisis misconduct. The Division has since charged more than 150 individuals and entities with wrongdoing, including 65 CEOs, CFOs, and other senior corporate officers. These financial crisis-related cases have resulted in $2.68 billion in financial relief for harmed investors, and 36 individuals have been barred from serving as officers and directors at public companies or from working in the securities industry. High-profile defendants in SEC cases alleging wrongdoing during the financial crisis include Goldman Sachs, J.P. Morgan, Credit Suisse, Citigroup, State Street, Wachovia, Charles Schwab, and former top executives at Fannie Mae, Freddie Mac, and Countrywide.
Mr. Khuzami has led the Division’s most productive period of insider trading enforcement as investigators cracked large-scale coordinated schemes involving Wall Street professionals. The Galleon Management/Raj Rajaratnam investigation has resulted in charges against 29 defendants including former McKinsey & Co. global head Rajat Gupta. The SEC also has pursued insider trading cases related to expert networks, charging hedge funds, portfolio managers, and analysts for illegally trading on confidential information obtained from technology company employees moonlighting as expert network consultants. The SEC also charged hedge fund advisory firm CR Intrinsic Investors LLC and its former portfolio manager Matthew Martoma in a $276 million insider trading scheme that is the largest ever charged by the SEC. Since the beginning of fiscal year 2010, the SEC has filed 180 enforcement actions alleging insider trading by approximately 430 individuals and entities for illicit profits totaling $900 million.
In addition to the all-time record number of 735 SEC enforcement actions in FY 2011 and another 734 actions in FY 2012, Mr. Khuzami led the Division to record results in a number of specific enforcement areas. The SEC filed 293 enforcement actions involving investment advisers in fiscal years 2011 and 2012, the most ever in a two-year period. There was a 60 percent increase in cases filed against broker-dealers in fiscal year 2011, and the number of filed actions increased another 19 percent in fiscal year 2012. The SEC also filed 17 actions related to municipal securities in fiscal year 2012, the most in a single year since 2004.
The agency’s record results came after Mr. Khuzami initiated the Enforcement Division’s most significant restructuring in the agency’s history. Specialized prosecution units were created nationwide to concentrate on the high-priority areas of investment advisers and private funds; large-scale trading and market abuse; mortgage and other structured products; bribery of foreign officials under the Foreign Corrupt Practices Act; and municipal securities and public pensions. The Division hired private sector and other experts, adopted targeted and risk-based investigative approaches, and increased its overall expertise in the products, transactions, and practices that occur in the securities markets it polices. An Office of Market Intelligence was created to revamp the way the Division handles the more than 30,000 tips, complaints and referrals received each year, enabling the Division to collect, analyze, and triage these complaints and thus enhancing its capacity to prioritize its investigations, stop fraud quicker, and minimize the losses to investors. The Enforcement Division also has become more efficient in maximizing scarce resources, and the agency has increased deterrence efforts by moving quickly to address newly-emerging or well-disguised threats before they take hold across entire industries.
Under Mr. Khuzami’s watch, the SEC created a valuable cooperation program authorizing the use of non-prosecution agreements, deferred prosecutions agreements, and cooperation agreements to establish incentives for individuals and companies to fully and truthfully cooperate and assist with SEC investigations and enforcement actions, often early on in the investigative phase. The agency also established the Office of the Whistleblower to implement the whistleblower program authorized by the Dodd-Frank Act to enable the Division to benefit from timely and high-quality evidence offered by whistleblowers and provide monetary awards to eligible individuals who come forward with high-quality original information that leads to an SEC enforcement action.
Mr. Khuzami has encouraged strong and effective collaboration with the agency’s law enforcement partners, including the criminal authorities as well as other federal and state authorities. He has served as co-chair of both the Securities and Commodities Fraud Working Group and the Residential Mortgage-Backed Securities Working Group of the inter-agency Financial Fraud Enforcement Task Force.
Prior to joining the SEC, Mr. Khuzami served as a federal prosecutor for 11 years with the U.S. Attorney’s Office for the Southern District of New York, including three years as chief of its Securities and Commodities Fraud Task Force. Mr. Khuzami was a member of the prosecution team in what was then the largest terrorism trial in U.S. history – the successful prosecution of the “Blind Sheik” Omar Ahmed Ali Abdel Rahman arising out of the 1993 bombing of the World Trade Center and the 1994 plot to blow up New York City’s bridges, tunnels and other landmarks.
Mr. Khuzami served as a law clerk for the Honorable John R. Gibson of the U.S. Court of Appeals for the Eighth Circuit in Kansas City, Mo. He received his J.D. from the Boston University School of Law, and graduated magna cum laude from the University of Rochester, where he was elected to Phi Beta Kappa. (Press Rel. 2013-3)
SEC Charges Two KPMG Auditors for Failed Audit of Nebraska Bank Hiding Loan Losses During Financial Crisis
The Securities and Exchange Commission today charged two auditors at KPMG for their roles in a failed audit of a Nebraska-based bank that hid millions of dollars in loan losses from investors during the financial crisis and eventually was forced to file for bankruptcy.
The SEC previously charged three former TierOne Bank executives responsible for the scheme. Two executives agreed to settle the SEC’s charges, and the case continues against the other.
The new charges in the SEC’s case are against KPMG partner John J. Aesoph and senior manager Darren M. Bennett. The SEC’s investigation found that they failed to appropriately scrutinize management’s estimates of TierOne’s allowance for loan and lease losses (known as ALLL). Due to the financial crisis and problems in the real estate market, this was one of the highest risk areas of the audit, yet Aesoph and Bennett failed to obtain sufficient evidence supporting management’s estimates of fair value of the collateral underlying the bank’s troubled loans. Instead, they relied on stale information and management’s representations, and they failed to heed numerous red flags when issuing unqualified opinions on TierOne’s 2008 financial statements and the bank’s internal controls over its financial reporting.
“Aesoph and Bennett merely rubber-stamped TierOne’s collateral value estimates and ignored the red flags surrounding the bank’s troubled real estate loans,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Auditors must adhere to professional auditing standards and exercise due diligence rather than merely relying on management’s representations.”
According to the SEC’s order instituting administrative proceedings against Aesoph, who lives in Omaha, and Bennett, who lives in Elkhorn, Neb., the auditors failed to comply with professional auditing standards in their substantive audit procedures over the bank’s valuation of loan losses resulting from impaired loans. They relied principally on stale appraisals and management’s uncorroborated representations of current value despite evidence that management’s estimates were biased and inconsistent with independent market data. Aesoph and Bennett failed to exercise the appropriate professional skepticism and obtain sufficient evidence that management’s collateral value and loan loss estimates were reasonable.
According to the SEC’s order, the internal controls identified and tested by the auditing engagement team did not effectively test management’s use of stale and inadequate appraisals to value the collateral underlying the bank’s troubled loan portfolio. For example, the auditors identified TierOne’s Asset Classification Committee as a key ALLL control. But there was no reference in the audit work papers to whether or how the committee assessed the value of the collateral underlying individual loans evaluated for impairment, and the committee did not generate or review written documentation to support management’s assumptions. Given the complete lack of documentation, Aesoph and Bennett had insufficient evidence from which to conclude that the bank’s internal controls for valuation of collateral were effective.
The SEC’s order alleges that Aesoph and Bennett engaged in improper professional conduct as defined in Section 4C of the Securities Exchange Act of 1934 and Rule 102(e)(1)(ii) of the Commission’s Rules of Practice. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the order are true and what, if any, remedial sanctions are appropriate pursuant to Rule 102(e). The administrative law judge will issue an initial decision no later than 300 days from the date of service of the order.
The SEC’s investigation of the auditors was led by Mary Brady and Michael D’Angelo of the Denver Regional Office. Barbara Wells and Nicholas Heinke will lead the Enforcement Division’s litigation in the administrative proceeding. (Press Rel. 2013-2; Rel. 34-68605; AAE Rel. 3436; File No.3-15168)
SEC Charges Three Former Bank Executives in Virginia for Understating Loan Losses During Financial Crisis
The Securities and Exchange Commission today charged three former executives at Norfolk, Va.-based Bank of the Commonwealth for understating millions of dollars in losses and masking the true health of the bank’s loan portfolio at the height of the financial crisis.
The SEC alleges that Edward J. Woodard, who was CEO, president, and chairman of the board, was responsible along with CFO Cynthia A. Sabol and executive vice president Stephen G. Fields for misrepresentations to investors by the bank’s parent company Commonwealth Bankshares. The consistent message in Commonwealth’s public statements and SEC filings was that its portfolio of loans – which comprised approximately 94 percent of the company’s total assets in 2008 – was conservatively managed according to strict underwriting standards aimed at keeping the bank’s reserved losses low during a time of unprecedented economic turmoil.
In reality, the SEC alleges that internal practice deviated significantly from what the public was being told. Woodard knew the true state of Commonwealth’s rapidly-deteriorating loan portfolio, yet he worked to hide the problems and engineer the misleading public statements, particularly those made in earnings releases. Sabol knew of the activity to mask the problems with the company’s loan portfolio and the corresponding effect these masking practices had on the bank’s financial statements and disclosures, yet she signed the disclosures and certified to the investing public that they were accurate. Fields oversaw the bank’s largest portfolio of construction and development loans and was involved in the masking practices.
“During times of financial stress, it’s more important than ever for executives to make full and honest disclosure to the investing public,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement. “Commonwealth’s executives did the opposite and hid the company’s worsening performance from shareholders through masking practices that understated the losses on its most troubled loans.”
According to the SEC’s complaint filed in U.S. District Court for the Eastern District of Virginia, Commonwealth understated its allowance for loan and lease losses (known as ALLL) by approximately 17 to 25 percent from November 2008 to August 2010. This caused the bank to understate its reported loss before income taxes by approximately 64 percent for fiscal year 2008. Commonwealth also understated its losses on real estate repossessed by the bank (known as OREO) in two fiscal quarters, which caused the bank to understate its reported loss before income. For eight consecutive fiscal quarters, Commonwealth underreported its total non-performing loans.
The SEC’s complaint alleges that Commonwealth obtained an appraisal for its largest collateral-dependent loan that falsely inflated the value of the collateral. The bank executed hundreds of “change-in-terms agreements” at the end of the quarter to remove tens of millions of dollars of loans from its reported non-performing loans. Woodard, Sabol, and Fields helped enable the bank to artificially bring otherwise-delinquent loans current by permitting checking accounts associated with the guarantors of the delinquent loans to be overdrawn. The bank also disbursed loan proceeds without inspecting the property to confirm that the work requiring the disbursement had actually been performed.
The SEC’s complaint charges Woodard, Sabol, and Fields with violations of the antifraud, reporting, recordkeeping, internal controls, deceit of auditors, and Sarbanes-Oxley certification provisions of the federal securities laws.
The SEC’s investigation, which is continuing, has been conducted by Laura B. Josephs, Thomas D. Silverstein, David S. Karp, Lucas R. Moskowitz, and David Estabrook. The SEC’s litigation will be led by Richard Hong. The SEC appreciates the cooperation of the Federal Bureau of Investigation, the U.S. Attorney’s Office for the Eastern District of Virginia, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Board of Governors of the Federal Reserve Board, the Federal Reserve Bank of Richmond, the Federal Deposit Insurance Corporation, and the Bureau of Financial Institutions of the Virginia State Corporation Commission. (Press Rel. 2013-4); [SEC v. Edward J. Woodard, Jr., Cynthia A. Sabol, CPA and Stephen G. Fields, Civil Action No. 2:13cv16 (Eastern District of Virginia)] (LR-22587; AAE Rel. 3437)
Credit Suisse Opportunity Funds, et al.
A notice has been issued giving interested persons until February 1, 2013, to request a hearing on an application filed by Credit Suisse Opportunity Funds, et al. for an order under Section 12(d)(1)(J) of the Investment Company Act of 1940 (Act) for an exemption from Sections 12(d)(1)(A) and (B) of the Act, and under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act. The order would permit certain registered closed-end management investment companies to acquire shares of registered open-end management investment companies that are within the same group of investment companies. (Rel. IC-30342 - January 7)
AllianceBernstein Active ETFs, Inc., et al.
An order has been issued on an application filed by AllianceBernstein Active ETFs, Inc., et al., to permit: (a) series of certain actively managed 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 after 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-30343 - January 8)
The Adams Express Company and Petroleum & Resources Corporation
An order has been issued on application filed by The Adams Express Company and Petroleum & Resources Corporation to permit certain registered closed-end management investment companies to make periodic distributions of long-term capital gains with respect to their outstanding common shares as frequently as monthly in any one taxable year, and as frequently as distributions are specified by or in accordance with the terms of any outstanding preferred shares that such investment companies may issue. (Rel. IC-30344 – January 8)
First Trust Exchange-Traded Fund, et al.
A notice has been issued giving interested persons until February 4, 2013, to request a hearing on an application filed by First Trust Exchange-Traded Fund, et al. for an order under Section 12(d)(1)(J) of the Investment Company Act of 1940 (Act) for an exemption from Sections 12(d)(1)(A), (B), and (C) of the Act, under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act, and under Section 6(c) of the Act for an exemption from Rule 12d1-2(a) under the Act. The order would (a) permit certain registered open-end management investment companies to acquire shares of certain registered open-end and closed-end management investment companies, business development companies as defined by Section 2(a)(48) of the Act, and registered unit investment trusts that are within and outside the same group of investment companies as the acquiring investment companies and (b) permit certain registered open-end management investment companies relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-30345 - January 8)
Immediate Effectiveness of Proposed Rule Changes
A proposed rule change filed by EDGA Exchange, Inc. to amend EDGA Rule 11.5(c) (NBBO Offset Peg Order) (SR-EDGA-2012-47) 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 January 7. (Rel. 34-68595)
A proposed rule change filed by EDGX Exchange, Inc. to amend EDGX Rule 11.5(c) (NBBO Offset Peg Order) (SR-EDGX-2012-49) 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 January 7. (Rel. 34-68596)
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-1 Arax Holdings Corp, SALVADOR DIAZ MIRON #87 (B Y C)., COLINIA SANTA MARIA LA RIBERA, MEXICO, O5, 06400, 5215532235259 - 10,000,000 ($100,000.00) Equity, (File 333-185928 - Jan. 8) (BR. 05) S-8 FNB CORP/FL/, F.N.B. CORPORATION, ONE F.N.B. BOULEVARD, HERMITAGE, PA, 16148, 724-981-6000 - 4,000,000 ($42,240,000.00) Equity, (File 333-185929 - Jan. 8) (BR. 07C) N-2 Western Asset Opportunistic Income Fund Inc., 620 EIGHTH AVENUE, NEW YORK, NY, 10018, 888-777-0102 - 0 ($1,000,000.00) Equity, (File 333-185930 - Jan. 8) (BR. 16) S-3 CHEMBIO DIAGNOSTICS, INC., 3661 HORSEBLOCK ROAD, MEDFORD, NY, 11763, (631) 924-1135 - 0 ($35,000.00) Equity, (File 333-185932 - Jan. 8) (BR. 01A) S-1 ExOne Co, 127 INDUSTRY BOULEVARD, NORTH HUNTINGDON, PA, 15642, 724-863-9663 - 0 ($75,000,000.00) Equity, (File 333-185933 - Jan. 8) (BR. 10A)
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 ----------------------------------------------------------------------------------------- 30DC, INC. MD 1.01,2.01,3.02,5.01, 12/31/12 7.01,9.01 ACCELERIZE NEW MEDIA INC DE 4.01,9.01 01/03/13 ACUITY BRANDS INC DE 2.02,8.01,9.01 01/04/13 ADT Corp DE 8.01,9.01 01/07/13 AFFYMETRIX INC DE 2.05,5.02 01/08/13 AGREE REALTY CORP DE 5.02,7.01,9.01 01/07/13 AK STEEL HOLDING CORP DE 5.02 01/02/13 Aleris Corp DE 5.02 01/07/13 ALLIANCE DATA SYSTEMS CORP DE 7.01,9.01 01/02/13 ALSERES PHARMACEUTICALS INC /DE DE 1.01 12/31/12 AMERICAN AIRLINES INC DE 8.01,9.01 01/08/13 AMERICAN EAGLE ENERGY Corp 1.01,3.02,9.01 01/04/13 American Fiber Green Products, Inc. NV 4.01,9.01 12/17/12 American Realty Capital Trust, Inc. DE 8.01 01/06/13 AMERICAN SUPERCONDUCTOR CORP /DE/ DE 5.02,9.01 01/02/13 AMERICAN TOWER CORP /MA/ DE 1.01,2.03,9.01 01/08/13 Americas Diamond Corp. NV 7.01 01/04/13 AMR CORP DE 8.01,9.01 01/08/13 ANALOGIC CORP MA 1.01,8.01,9.01 01/08/13 Annie's, Inc. DE 5.02,9.01 01/05/13 APOLLO GROUP INC AZ 2.02,9.01 01/08/13 Apple REIT Ten, Inc. VA 8.01 01/04/13 AQUALIV TECHNOLOGIES, INC. NV 1.01,2.01,3.02,3.03, 12/31/12 5.01,5.02,5.03,9.01 ARBOR REALTY TRUST INC MD 8.01,9.01 01/07/13 ARIAD PHARMACEUTICALS INC DE 8.01,9.01 01/07/13 ARIAD PHARMACEUTICALS INC DE 1.01 01/04/13 Artemis Acquisition Corp. DE 1.01,2.01,3.02,4.01, 12/31/12 5.02,5.06,9.01 Artisanal Brands, Inc. NY 4.01,8.01,9.01 01/07/13 Ascena Retail Group, Inc. DE 5.02,9.01 01/08/13 ASTA FUNDING INC DE 3.01,9.01 01/02/13 ATHENAHEALTH INC DE 8.01,9.01 01/07/13 ATHERSYS, INC / NEW DE 5.02 01/07/13 Atlas Financial Holdings, Inc. E9 2.01,9.01 01/08/13 AVNET INC NY 5.02 12/31/12 BANCTRUST FINANCIAL GROUP INC AL 3.01 01/02/13 Bank of Marin Bancorp CA 7.01,9.01 01/08/13 BIOCRYST PHARMACEUTICALS INC DE 5.02 01/04/13 BIOCUREX INC A1 5.02 12/31/12 BIOLIFE SOLUTIONS INC DE 8.01,9.01 01/07/13 BIOSYNERGY INC IL 9.01 01/08/13 BIOTIME INC CA 1.01,3.02,9.01 01/04/13 Bloomin' Brands, Inc. DE 5.02 01/02/13 BRAINSTORM CELL THERAPEUTICS INC. DE 8.01,9.01 01/07/13 CAMBRIDGE HEART INC DE 2.02,5.02,8.01,9.01 01/02/13 CANADIAN DERIVATIVES CLEARING CORP A6 9.01 12/31/12 CARMIKE CINEMAS INC DE 2.01,9.01 11/15/12 AMEND CARROLS RESTAURANT GROUP, INC. 8.01,9.01 01/08/13 Cellceutix CORP NV 1.02,9.01 01/08/13 CEPHEID CA 2.02,9.01 01/08/13 Cereplast Inc NV 1.01,9.01 01/02/13 CHARLES RIVER LABORATORIES INTERNATIO 7.01,9.01 01/07/13 Chatham Lodging Trust MD 7.01,8.01,9.01 01/08/13 CHINA BAK BATTERY INC NV 5.02,9.01 01/08/13 CHINA BAK BATTERY INC NV 4.01,9.01 01/08/13 China Growth Equity Investment Ltd E9 3.01 01/02/13 CINCINNATI BELL INC OH 8.01,9.01 01/08/13 CINCINNATI FINANCIAL CORP OH 5.04,9.01 01/08/13 CISCO SYSTEMS, INC. CA 5.02,9.01 01/07/13 CLIFTON SAVINGS BANCORP INC 8.01,9.01 01/07/13 Cobalt International Energy, Inc. 2.02 01/08/13 COBRA ELECTRONICS CORP DE 5.02,9.01 01/04/13 Comjoyful International Co NV 5.03,9.01 01/08/13 COMMUNITY FINANCIAL SHARES INC DE 5.02 01/08/13 Crestwood Midstream Partners LP DE 1.01,2.01,3.02,5.03, 01/08/13 7.01,9.01 CROWN DYNAMICS CORP DE 5.02 01/08/13 Cryoport, Inc. NV 1.01,9.01 01/03/13 CVB FINANCIAL CORP CA 8.01 01/07/13 DAKOTA PLAINS HOLDINGS, INC. NV 7.01,9.01 01/07/13 DARDEN RESTAURANTS INC FL 8.01,9.01 01/08/13 Destination Maternity Corp DE 2.02,9.01 01/08/13 DETHRONE ROYALTY HOLDINGS, INC. NV 8.01,9.01 01/04/13 Diamond Resorts Corp MD 1.01,5.02,9.01 01/07/13 Digital Development Group Corp NV 5.02,9.01 01/03/13 DISCOVERY LABORATORIES INC /DE/ DE 1.01,9.01 01/03/13 EASTGROUP PROPERTIES INC MD 1.01,2.03,9.01 01/02/13 ECOLAB INC DE 2.02,7.01,9.01 01/08/13 EDISON MISSION ENERGY DE 7.01,9.01 01/08/13 Ellington Financial LLC DE 7.01,9.01 01/08/13 Emerald Oil, Inc. MT 1.01,7.01,9.01 01/07/13 Emergency Medical Services CORP DE 7.01,9.01 01/08/13 ENDOCYTE INC DE 5.02,9.01 01/04/13 ENDOLOGIX INC /DE/ DE 2.02,9.01 01/08/13 EnergySolutions, Inc. DE 1.01,9.01 01/07/13 ENVIRONMENTAL TECTONICS CORP PA 2.02,9.01 01/07/13 EPICEPT CORP 4.01,9.01 01/03/12 ERHC Energy Inc CO 9.01 01/07/13 EVANS & SUTHERLAND COMPUTER CORP UT 8.01 01/07/13 FAMOUS DAVES OF AMERICA INC MN 5.02,9.01 01/08/13 Federal Home Loan Bank of Atlanta X1 2.03 01/02/13 Federal Home Loan Bank of Boston X1 2.03 01/03/13 Federal Home Loan Bank of Chicago X1 2.03 01/02/13 Federal Home Loan Bank of Dallas 2.03,9.01 01/02/13 Federal Home Loan Bank of Des Moines X1 2.03,9.01 01/04/13 Federal Home Loan Bank of Indianapoli X1 2.03,9.01 01/08/13 Federal Home Loan Bank of New York X1 2.03,9.01 01/02/13 Federal Home Loan Bank of Pittsburgh PA 2.03,9.01 01/02/13 Federal Home Loan Bank of San Francis X1 2.03 01/03/13 Federal Home Loan Bank of Seattle 2.03 01/03/13 Federal Home Loan Bank of Topeka 2.03,9.01 01/02/13 Fifth Street Finance Corp DE 8.01,9.01 01/08/13 FIRST MERCHANTS CORP IN 8.01 01/03/13 FIRST TRUST/ABERDEEN EMERGING OPPORTU 7.01,9.01 01/08/13 FIRST TRUST/ABERDEEN GLOBAL OPPORTUNI 7.01,9.01 01/08/13 FORD MOTOR CO DE 8.01,9.01 01/08/13 Forex International Trading Corp. NV 2.03,5.02 12/31/12 Fortress Investment Group LLC DE 7.01 01/08/13 GASTAR EXPLORATION LTD 5.02,7.01,9.01 01/07/13 GENERAL STEEL HOLDINGS INC NV 4.01,9.01 01/04/13 AMEND GEO POINT TECHNOLOGIES INC UT 7.01,9.01 01/08/13 GERON CORP DE 1.01,9.01 01/04/13 GLOBAL PAYMENTS INC GA 2.02,9.01 01/08/13 GRANITE CITY FOOD & BREWERY LTD. MN 5.02 12/28/12 AMEND Graystone Co DE 3.02 01/08/13 GREATBATCH, INC. DE 2.02,9.01 01/08/13 GREENBRIER COMPANIES INC OR 8.01,9.01 01/07/13 GreenPlex Services, Inc. NV 1.01,3.02 12/31/12 GROUP 1 AUTOMOTIVE INC DE 7.01 01/07/13 GTX INC /DE/ DE 8.01,9.01 01/08/13 Guardian 8 Holdings NV 1.01,2.03,3.01,8.01, 12/10/12 9.01 GYMBOREE CORP DE 5.02,9.01 01/08/13 HAMPTON ROADS BANKSHARES INC VA 7.01,9.01 01/08/13 HARMONIC INC DE 5.02 01/02/13 HASCO Medical, Inc. FL 5.02 01/07/13 HELMERICH & PAYNE INC DE 7.01,9.01 01/08/13 HERBALIFE LTD. E9 7.01 01/08/13 IHS Inc. DE 2.02,9.01 01/08/13 IHS Inc. DE 5.02,9.01 01/08/13 ILLUMINA INC DE 8.01 01/08/13 IMPAX LABORATORIES INC DE 7.01,9.01 01/07/13 Inland American Real Estate Trust, In MD 7.01,9.01 01/07/13 INNOSPEC INC. DE 8.01,9.01 12/24/12 IRONWOOD PHARMACEUTICALS INC DE 1.01,2.03,9.01 01/04/13 KBS Real Estate Investment Trust II, MD 7.01,9.01 01/08/13 KBS Real Estate Investment Trust, Inc MD 7.01,9.01 01/08/13 KEWAUNEE SCIENTIFIC CORP /DE/ DE 5.02,5.03,9.01 01/05/13 KILROY REALTY CORP MD 1.01,7.01,9.01 01/07/13 KINDRED HEALTHCARE, INC DE 7.01,9.01 01/07/13 KINGSTONE COMPANIES, INC. DE 4.01,9.01 01/07/13 LABORATORY CORP OF AMERICA HOLDINGS DE 7.01 01/08/13 LEGGETT & PLATT INC MO 5.02 01/07/13 LEXINGTON REALTY TRUST MD 7.01,9.01 01/07/13 LIFESTYLE MEDICAL NETWORK, INC. NV 4.01,9.01 01/02/13 LINDSAY CORP DE 2.02,9.01 01/08/13 LKQ CORP DE 5.02,9.01 01/02/13 LODGENET INTERACTIVE CORP DE 3.01,9.01 01/03/13 LODGENET INTERACTIVE CORP DE 1.01,3.03,9.01 01/08/13 LOOKSMART LTD DE 2.02,5.02,7.01 01/07/13 Lux Digital Pictures, Inc. 5.03,9.01 01/02/13 LVB Acquisition, Inc. 2.02,9.01 01/08/13 MARCUS CORP WI 8.01,9.01 01/08/13 MARINE PRODUCTS CORP DE 8.01,9.01 01/07/13 MBIA INC CT 8.01 01/08/13 MEDICAL CONNECTIONS HOLDINGS, INC. FL 4.01,9.01 01/03/13 MERITOR INC IN 2.05 01/03/13 MetaStat, Inc. NV 8.01,9.01 01/07/13 METLIFE INC DE 8.01 01/07/13 MEXICO FUND INC MD 7.01,9.01 12/31/12 Mistras Group, Inc. DE 2.02,9.01 01/08/13 MOBILE GAMING INTERNATIONAL CORP NV 5.02 12/02/12 MONSANTO CO /NEW/ DE 2.02,9.01 01/08/13 MOTRICITY INC DE 3.01 01/02/13 MYOS Corp NV 5.02,9.01 01/02/13 NCI, Inc. DE 1.01,9.01 12/31/12 NEDAK ETHANOL, LLC NE 8.01,9.01 01/08/13 NetApp, Inc. CA 1.02 01/02/12 NeurogesX Inc CA 5.02 01/04/13 NEWS CORP 8.01,9.01 01/08/13 Novus Robotics Inc. NV 4.01,9.01 01/01/13 OCCIDENTAL PETROLEUM CORP /DE/ DE 7.01,9.01 01/08/13 Ocean Electric Inc. 4.01,9.01 11/28/12 AMEND OMNICARE INC DE 7.01,9.01 01/08/13 ONEOK INC /NEW/ OK 7.01,9.01 01/08/13 ONEOK Partners LP DE 7.01,9.01 01/08/13 Orbitz Worldwide, Inc. DE 5.02 01/03/13 Orient Paper Inc. NV 8.01,9.01 01/08/13 Patriot Minefinders Inc. NV 8.01,9.01 01/03/13 PCS EDVENTURES COM INC ID 2.02,7.01,9.01 01/07/13 PENNSYLVANIA REAL ESTATE INVESTMENT T PA 8.01 01/02/13 PERCEPTRON INC/MI MI 4.01,9.01 01/07/13 PGT, Inc. DE 1.01 12/21/12 PLEXUS CORP WI 2.02,9.01 01/07/13 POKERTEK, INC. NC 8.01,9.01 01/07/13 POWER SOLUTIONS INTERNATIONAL, INC. DE 5.02,9.01 01/04/13 PRECISION CASTPARTS CORP OR 8.01,9.01 01/04/13 PROCTER & GAMBLE Co OH 5.02 01/08/13 PROCTER & GAMBLE Co OH 7.01 01/08/13 PROGRESS SOFTWARE CORP /MA MA 5.02,9.01 01/02/13 Public Storage MD 1.01,3.03,5.03,9.01 01/07/13 Ranger Gold Corp. 5.02 01/07/13 RealEstate Pathways, Inc. WY 5.03,5.07,9.01 12/31/12 REALPAGE INC DE 5.02 01/03/13 REALTY INCOME CORP MD 5.02,9.01 01/08/13 RED TRAIL ENERGY, LLC ND 8.01,9.01 01/08/13 REGENERON PHARMACEUTICALS INC NY 7.01,9.01 01/08/13 REGENERX BIOPHARMACEUTICALS INC DE 5.02,9.01 01/02/13 Renewable Energy Group, Inc. DE 8.01 01/03/13 Reven Housing REIT, Inc. CO 1.01,2.03,3.02,9.01 01/03/13 RPM INTERNATIONAL INC/DE/ DE 2.02,9.01 01/08/13 Sanomedics International Holdings, In DE 5.02,9.01 12/31/12 SAVIENT PHARMACEUTICALS INC DE 5.02,9.01 01/06/13 SCANSOURCE INC SC 2.02,9.01 01/08/13 SCHNITZER STEEL INDUSTRIES INC OR 2.02,9.01 01/08/13 SCHOOL SPECIALTY INC WI 1.01,2.03,2.04,9.01 01/04/13 Seagate Technology plc L2 2.02,9.01 01/08/13 SEARS HOLDINGS CORP DE 5.02,8.01,9.01 01/07/13 SemiLEDs Corp 5.02 01/08/13 Shire plc 2.02,9.01 01/08/13 Sierra Income Corp MD 8.01,9.01 01/08/13 SIGNET JEWELERS LTD 2.02 01/08/13 SKY PETROLEUM, INC. NV 7.01,9.01 01/08/13 Solar Senior Capital Ltd. MD 7.01,9.01 01/08/13 SOUTHWEST AIRLINES CO TX 2.02,9.01 12/31/12 SPEEDWAY MOTORSPORTS INC DE 7.01,9.01 01/08/13 Sputnik Enterprises, Inc NV 1.02,9.01 01/07/13 Standard Drilling, Inc. 9.01 01/07/13 STAPLES INC DE 1.01,8.01,9.01 01/07/13 STEVEN MADDEN, LTD. DE 5.02,9.01 01/02/13 SunCoke Energy, Inc. 7.01,8.01,9.01 01/08/13 SUNRISE SENIOR LIVING INC DE 5.07,8.01,9.01 01/07/13 Swisher Hygiene Inc. DE 3.01,7.01,9.01 01/02/13 Synthetic Biologics, Inc. NV 7.01,9.01 01/08/13 TGC INDUSTRIES INC TX 5.02,9.01 01/02/13 TITANIUM METALS CORP DE 2.01,3.01,3.03,5.02, 01/04/13 9.01 Transcept Pharmaceuticals Inc DE 5.02 01/04/13 TREE TOP INDUSTRIES, INC. NV 1.01,5.02,9.01 01/07/13 TUESDAY MORNING CORP/DE DE 2.02,9.01 01/08/13 Twin Cities Power Holdings, LLC MN 5.02 01/04/13 U S PHYSICAL THERAPY INC /NV NV 7.01,9.01 01/08/13 ULTRA CLEAN HOLDINGS INC DE 2.02,9.01 01/08/13 United Community Bancorp IN 8.01,9.01 01/08/13 United Community Bancorp X1 8.01,9.01 01/08/13 URANIUM ENERGY CORP NV 7.01,9.01 01/08/13 VALERO ENERGY CORP/TX DE 5.02,9.01 01/07/13 VALMONT INDUSTRIES INC DE 5.02,9.01 01/08/13 VERTICAL HEALTH SOLUTIONS INC FL 2.03,3.02,9.01 12/31/12 Viggle Inc. DE 8.01 01/08/13 VIRGINIA ELECTRIC & POWER CO VA 8.01,9.01 01/03/13 Vystar Corp GA 5.02,9.01 01/02/13 W&T OFFSHORE INC TX 8.01,9.01 01/03/13 WaferGen Bio-systems, Inc. NV 7.01,9.01 01/08/13 WASHINGTON POST CO DE 8.01,9.01 01/08/13 WATSON PHARMACEUTICALS INC NV 2.05 01/03/13 Wayside Technology Group, Inc. DE 1.01,9.01 01/04/13 WD 40 CO DE 2.02,9.01 01/08/13 WELLCARE HEALTH PLANS, INC. DE 2.02,9.01 01/02/13 WELLPOINT, INC IN 7.01 01/08/13 WELLS FARGO & COMPANY/MN DE 8.01,9.01 01/07/13 WHITING PETROLEUM CORP DE 5.02 01/07/13 WINDSTREAM CORP DE 8.01,9.01 01/08/13 WORTHINGTON INDUSTRIES INC OH 2.02,9.01 01/03/13 WPX ENERGY, INC. DE 7.01 01/08/13 ZIOPHARM ONCOLOGY INC DE 5.02,9.01 01/08/13 ZIPCAR INC 8.01,9.01 01/08/13 ZIPREALTY INC 2.02,9.01 01/07/13