Open Meeting Agenda
|Item 1:||Phlo Corporation, James B. Hovis, and Anne P. Hovis|
Office: Office of the General Counsel
Staff: Joan Loizeaux and Diane V. White
The Commission will hear oral argument on an appeal by Phlo Corporation, a beverage manufacturer and an issuer of publicly traded securities that also acts as transfer agent for its own securities, its president and chief executive officer James B. Hovis (“J. Hovis”), and its executive vice president and secretary, Anne P. Hovis (“A. Hovis”), who also served as Phlo’s general counsel, (together, “Respondents”) from the decision of an administrative law judge. The law judge found that Phlo willfully violated provisions requiring transfer agents to turnaround at least ninety percent of all routine items received in a month within three business days and willfully failed to make records available for examination by Commission staff. The law judge concluded that A. Hovis willfully aided and abetted and was a cause of Phlo’s failure to complete transfers in a timely manner and failure to make records available for examination.
The law judge further found that Phlo failed to make timely filings of annual and quarterly reports with the Commission between March 2003 and November 2005. The law judge found that J. Hovis willfully aided and abetted and was a cause of Phlo’s violations of the periodic reporting requirements.
The law judge assessed civil money penalties of $100,000 against Phlo, $25,000 against J. Hovis, and $50,000 against A. Hovis, revoked Phlo’s registration as a transfer agent, barred A. Hovis from associating with any transfer agent, and imposed cease-and-desist orders as to all Respondents.
Among the issues likely to be argued are whether Respondents violated the provisions charged, and, if so, whether and to what extent sanctions should be imposed.
For further information, please contact the Office of the Secretary at (202) 551-5400.
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