SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings.
Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange Commission will hold the following meetings during the week of January 29, 2007:
Open Meetings will be held on Wednesday, January 31, 2007 at 10:00 a.m. and 2:00 p.m. in the Auditorium, Room LL-002, and Closed Meetings will be held on Wednesday, January 31, 2007 at 11:00 a.m. and Thursday, February 1, 2007 at 2:00 p.m.
Commissioners, Counsels to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meetings. Certain staff members who have an interest in the matters may also be present.
The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a) (3), (5), (7), 9(ii) and (10) permit consideration of the scheduled matters at the Closed Meetings.
Commissioner Casey, as duty officer, voted to consider the items listed for the closed meetings in closed session.
The subject matter of the Open Meeting scheduled for Wednesday January 31, 2007 at 10:00 a.m. will be:
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.
The subject matter of the Closed Meeting scheduled for January 31, 2007 at 11:00 a.m. will be:
The subject matter of the Open Meeting scheduled for January 31, 2007 at 2:00 p.m. will be:
The subject matter of the Closed Meeting scheduled for Thursday, February 1, 2007 will be:
formal orders of investigation;
institution and settlement of injunctive actions;
institution and settlement of administrative proceedings of an enforcement nature;
resolution of litigation claims;
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.
Nancy M. Morris
January 24, 2007