SEC NEWS DIGEST Issue 2002-178 September 13, 2002 COMMISSION ANNOUNCEMENTS COMMISSION MEETINGS Following is a schedule of Commission meetings which will be conducted under provisions of the Government in the Sunshine Act. Meetings will be scheduled according to the requirements of agenda items under consideration. Open meetings will be held in the Commission Meeting Room, Room 1C30, at the Commission's headquarters building, 450 Fifth Street, N.W., Washington, D.C. Visitors are welcome at all open meetings, insofar as space is available. Persons wishing to photograph or videotape Commission meetings must obtain permission in advance from the Secretary of the Commission. Persons wishing to tape record a Commission meeting should notify the Secretary's office 48 hours in advance of the meeting. Any member of the public who requires auxiliary aids such as a sign language interpreter or material on tape to attend a public meeting should contact Rochelle Franks, Office of Administrative and Personnel Management, to make arrangements. Ms. Franks can be reached at TTY number (202) 942-9558. If you are calling from a non-TTY number, please call the Relay Service at 1-800-877-8339. CLOSED MEETING - THURSDAY, SEPTEMBER 19, 2002 - 10:00 A.M. The subject matter of the closed meeting scheduled for Thursday, September 19, 2002 will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings of an enforcement nature; Formal orders of investigations; and Regulatory matters regarding financial institutions. OPEN MEETING - THURSDAY, SEPTEMBER 19, 2002 - 3:30 P.M. The subject matter of the open meeting scheduled for Thursday, September 19, 2002 will be: 1. The Commission will consider whether to propose amendments to Forms N-1A, N-2, and N-3, and proposed Form N-CSR, that would require mutual funds and other registered management investment companies to disclose the policies and procedures that they use to determine how to vote proxies relating to portfolio securities. The proposed amendments would also require registered management investment companies to file with the Commission, and make available to shareholders, their proxy voting records. 2. The Commission will consider whether to propose new Rule 206(4)-6 under the Investment Advisers Act of 1940 that would require registered investment advisers to adopt proxy voting policies and procedures, and to disclose to clients those policies and procedures and how clients can obtain information about how the adviser has voted their proxies. In addition, the Commission will consider an amendment to rule 204-2 under the Investment Advisers Act of 1940 that would require advisers to keep records of how they vote client proxies. 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) 942-7070. ALAN BELLER TO TESTIFY Alan Beller, Director of the Commission's Division of Corporation Finance, will testify before the Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, September 17 concerning the application of the federal securities laws disclosure, registration, and reporting requirements to the Tennessee Valley Authority. The hearing will begin at 10:30 a.m. in Room 538 of the Dirksen Senate Office Building. RULES AND RELATED MATTERS RULE 15C3-3 RESERVE REQUIREMENTS FOR MARGIN RELATED TO SECURITY FUTURES PRODUCTS The Commission is proposing for comment amendments to Rule 15c3-3a, the formula for determination of customer reserve requirements of broker- dealers under the Securities Exchange Act of 1934, in response to the anticipated trading of security futures products. The proposed amendments would permit a broker-dealer, subject to specified conditions, to include margin related to security futures products written, purchased or sold in customer securities accounts required and on deposit with a registered clearing agency or a derivatives clearing organization as a debit item in calculating its customer reserve requirement. (Rel. 34-46492; File No. S7-34-02) ENFORCEMENT PROCEEDINGS FORMER STATE STREET EXECUTIVE CRIMINALLY INDICTED FOR SECURITIES FRAUD The Commission announced today that on September 10, Edward R. Voccola (Voccola) of Boston was indicted by the U.S. Attorney for the District of Massachusetts on 18 criminal counts, including 11 counts of securities fraud. The indictment charges that from February, 2000 through August, 2000, Voccola engaged in free-riding, the practice of purchasing securities without intending to pay for them and using the proceeds of the sale of stock to pay for the purchase. Voccola opened accounts at the Boston offices of eleven brokerage firms and bought millions of dollars of stock, which he paid for with worthless checks totaling more than $4.9 million. He then quickly sold the stock, often at a profit, to pay for the original purchases and buy additional stock. However, if the trades lost money, he did not cover the loss. Instead, according to the indictment, he defrauded the brokerage firms by shifting over $190,000 in losses to them. The indictment further alleges that Voccola's free- riding scheme took place when he was under criminal indictment for tax evasion and continued even after a federal court ordered him to restrict his securities trading. Voccola later pleaded guilty to the tax evasion charges and was sentenced to twelve months in prison. If convicted on the current criminal charges, Voccola faces up to five years imprisonment, to be followed by three years of supervised release, and a $250,000 fine on each count. On August 6, 2001, the Commission filed a civil complaint against Voccola in connection with the scheme described above. The Commission's complaint charges that Voccola's conduct violated the antifraud provisions of the Securities Act of 1933 (Section 17(a)) and the Securities Exchange Act of 1934 (Section 10(b) and Rule 10b-5 thereunder). The Commission's complaint seeks a permanent injunction against violations of the securities laws, disgorgement by Voccola of his illegal profits and the losses he caused the brokerage firms to incur, and civil monetary penalties. See Litigation Release No. 17091 (August 6, 2001). The Commission's motion for summary judgment, filed July 31, 2002, is currently pending. The criminal case is being prosecuted by Assistant U.S. Attorney Stephen G. Huggard of the U.S. Attorney's Public Corruption & Special Prosecutions Unit and Special Assistant U.S. Attorney Lauren Albrecht on detail from the Commission. [SEC v. Edward R. Voccola, Civil Action No. 01CV11359-NG, USDC, DMA]; [U.S. v. Edward R. Voccola, Criminal No. 02- 10257-REK] (LR-17724) INVESTMENT COMPANY ACT RELEASES COMMONFUND INSTITUTIONAL FUNDS, ET AL. An order has been issued on an application filed by Commonfund Institutional Funds and Commonfund Asset Management Company, Inc., for an order that would grant relief from Sections 10(f), 12(d)(3), 17(a), and 17(e) of the Investment Company Act of 1940 (Act) and from Rule 17e- 1 under the Act. The order permits certain registered open-end management investment companies advised by several investment advisers to engage in principal and brokerage transactions with a broker-dealer affiliated with one of the investment advisers and to purchase securities in certain underwritings. The transactions would be between the broker-dealer and a portion of the investment company's portfolio not advised by the adviser affiliated with the broker-dealer. The order also permits these investment companies not to aggregate certain purchases from an underwriting syndicate in which an affiliated person of one of the investment advisers is a principal underwriter. Further, the order permits a portion of an investment company's portfolio to purchase securities issued by a broker-dealer, which is an affiliated person of an investment adviser to another portion, subject to the limits in Rule 12d3-1 under the Act. (Rel. IC-25726 - September 4) HOLDING COMPANY ACT RELEASES SYSTEM ENERGY RESOURCES, INC., ET AL. A supplemental order has been issued authorizing a proposal by Entergy Corporation, System Energy Resources, Inc., Entergy Arkansas, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc. and Entergy New Orleans, Inc. to increase underwriters' fees in connection with the issuance of securities. (Rel. 35-27566) NISOURCE INC., ET AL. A supplemental order has been issued authorizing a tax allocation agreement between NiSource Inc., a registered holding company, its ten utility subsidiaries, and certain of its nonutility subsidiaries. (Rel. 35-27567) SELF-REGULATORY ORGANIZATIONS IMMEDIATE EFFECTIVENESS OF PROPOSED RULE CHANGE A proposed rule change by the Chicago Stock Exchange (SR-CHX-2002-23) has become immediately effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934 and Rule 19b-4(f)(2) thereunder. The filing amends CHX's fee schedule to reduce the fixed fee charged to specialists trading Nasdaq/NM securities. Publication of the notice in the Federal Register is expected during the week of September 16. (Rel. 34-46491) DELISTINGS GRANTED An order has been issued granting the application of the New York Stock Exchange to strike from listing and registration the Common Units (representing limited partner interests) of Cornerstone Propane Partners, L.P., effective at the opening of business on September 13, 2002. (Rel. 34-46494) An order has been issued granting the application of the New York Stock Exchange to strike from listing and registration the Common Stock, $1.00 par value, of Puerto Rican Cement Company, Inc., effective at the opening of business on September 13, 2002. (Rel. 34-46495) SECURITIES ACT REGISTRATIONS 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 obtained in person or by writing to the Commission's Public Reference Branch at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the following e-mail box address: . In most cases, this information is also available on the Commission's website: . S-8 NTELOS INC, 401 SPRING LN PO BOX 1990, STE 300, WAYNESBORO, VA, 22980, 5409463500 - 0 ($34,844.32) Equity, (File 333-99445 - Sep. 12) (BR. 37) S-8 GENUS INC, 1139 KARLSTAD DRIVE, SUNNYVALE, CA, 94089-2117, 4087477120 - 1,300,000 ($1,644,050.00) Equity, (File 333-99447 - Sep. 12) (BR. 36) SB-2 LITERARY PLAYPEN INC, 1495 RIDGEVIEW DR, SUITE 220, RENO, NV, 89509, 7758276138 - 500,000 ($500,000.00) Equity, (File 333-99449 - Sep. 12) (BR. 09) S-8 MAINE PUBLIC SERVICE CO, 209 STATE ST, PRESQUE ISLE, ME, 04769-1209, 2077685811 - 150,000 ($4,567,500.00) Equity, (File 333-99453 - Sep. 12) (BR. 02) SB-2 FLOWER VALET, 2950 E FLAMINGO ROAD, STE B-A1, HENDERSON, NV, 89121, 7028665841 - 1,000,000 ($100,000.00) Equity, (File 333-99455 - Sep. 12) (BR. 09) S-4 GB&T BANCSHARES INC, P O BOX 2760, 500 JESSE JEWELL PARKWAY S E, GAINSVILLE, GA, 30501, 831,554 ($14,745,397.00) Equity, (File 333-99461 - Sep. 12) (BR. 07) S-3 FINANCIAL ASSET SECURITIES CORP, 600 STEAMBOAT ROAD, GREENWICH, CT, 92618, 2036252700 - 1,000,000 ($1,000,000.00) Asset-Backed Securities, (File 333-99463 - Sep. 12) (BR. 05) S-8 MAVERICK MINERALS CORP, 2501 LANSDOWNE AVE, SASKATOON, SASKATCHEWAN CANADA, NV, S7J 1H3, 306-343-5799 - 3,000,000 ($240,000.00) Equity, (File 333-99465 - Sep. 12) (BR. 02) SB-2 ONE VOICE TECHNOLOGIES INC, 6333 GREENWICH DR #240, SAN DIEGO, CA, 92122, 6195524466 - 15,091,500 ($2,414,640.00) Equity, (File 333-99467 - Sep. 12) (BR. 03) S-3 WAVE SYSTEMS CORP, 480 PLEASANT ST, LEE, MA, 01238, 4132431600 - 0 ($2,567,000.00) Equity, (File 333-99469 - Sep. 12) (BR. 03) S-8 BIOSHIELD TECHNOLOGIES INC, 4405 INTERNATIONAL BOULEVARD, SUITE B109, NORCROSS, GA, 30093, 7709253432 - 7,000,000 ($441,000.00) Equity, (File 333-99471 - Sep. 12) (BR. 02) S-8 UNIVERSAL COMPRESSION HOLDINGS INC, 4440 BRITTMOORE RD, HOUSTON, TX, 77041, 7134664103 - 0 ($45,568,600.00) Equity, (File 333-99473 - Sep. 12) (BR. 06) S-3 PROVIDIAN FINANCIAL CORP, 201 MISSION ST 28TH FLOOR, SAN FRANCISCO, CA, 94105, 4155430404 - 0 ($73,920,000.00) Equity, (File 333-99475 - Sep. 12) (BR. 07) S-1 MELLON BANK N A, ONE MELLON BANK CTR, ROOM 980, PITTSBURGH, PA, 15258-0001, 4122345000 - 0 ($1,000,000.00) Asset-Backed Securities, (File 333-99477 - Sep. 12) (BR. 05) RECENT 8K FILINGS Form 8-K is used by companies to file current reports on the following events: Item 1. Changes in Control of Registrant. Item 2. Acquisition or Disposition of Assets. Item 3. Bankruptcy or Receivership. Item 4. Changes in Registrant's Certifying Accountant. Item 5. Other Materially Important Events. Item 6. Resignations of Registrant's Directors. Item 7. Financial Statements and Exhibits. Item 8. Change in Fiscal Year. Item 9. Regulation FD Disclosure. The following companies have filed 8-K reports for the date indicated and/or amendments to 8-K reports previously filed, responding to the item(s) of the form specified. 8-K reports may be obtained in person or by writing to the Commission's Public Reference Branch at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the following e-mail box address: . In most cases, this information is also available on the Commission's website: . STATE 8K ITEM NO. NAME OF ISSUER CODE 1 2 3 4 5 6 7 8 9 DATE COMMENT ---------------------------------------------------------------------------------- A I RECEIVABLES TRANSFER CORP X 08/30/02 ABM INDUSTRIES INC /DE/ DE X X 09/12/02 ACCRED HOME LNDRS INC AC MOR LN TR 20 DE X X 07/17/00 ACCRED HOME LNDRS INC AC MOR LN TR 20 DE X X 07/22/02 ADVA INTERNATIONAL INC DE X 09/12/02 AIRPLANES LTD DE X 09/12/02 ALTERNET SYSTEMS INC NV X X 09/02/02 AMERICAN RETIREMENT CORP TN X X 09/12/02 AMERICAN UNITED GLOBAL INC DE X 09/10/02 ANTHONY & SYLVAN POOLS CORP OH X 09/12/02 APPLE HOSPITALITY TWO INC VA X X 08/28/02 BANK OF AMERICA MORTGAGE SECURITIES I DE X X 09/11/02 BANK OF AMERICA MORTGAGE SECURITIES I DE X X 09/12/02 BIOSHIELD TECHNOLOGIES INC GA X X 06/30/02 CAPITOL COMMUNITIES CORP NY X X 09/12/02 AMEND CBRL GROUP INC TN X X X 09/12/02 CENTERPOINT ENERGY INC X X 09/12/02 CGI HOLDING CORP NV X 09/10/02 CHEROKEE INC DE X 09/12/02 CHINA FUND INC MD X 08/01/02 CHINA XIN NETWORK MEDIA CORP FL X X 09/10/02 CMGI INC DE X X 09/11/02 COMMERCIAL MORTGAGE PASS-THROUGH CERT MO X X 09/12/02 COMMUNITRONICS OF AMERICA INC UT X X 03/31/02 AMEND COMPUTER NETWORK TECHNOLOGY CORP MN X X 09/12/02 CONSECO INC IN X X 09/09/02 CONSOLIDATED FREIGHTWAYS CORP DE X 09/12/02 CORNERSTONE PROPANE PARTNERS LP DE X 09/11/02 CORPORATE VISION INC OK X X X X 03/05/02 AMEND CUMBERLAND TECHNOLOGIES INC FL X X 12/31/02 DIAL THRU INTERNATIONAL CORP DE X 08/23/02 AMEND DIGITAL POWER CORP CA X X 09/10/02 DISC GRAPHICS INC /DE/ DE X 09/30/02 DISCOVERY INVESTMENTS INC NV X X X X X 09/04/02 DUANE READE INC DE X X 09/05/02 DWC INSTALLATIONS X X 09/10/02 EAUTOCLAIMS COM INC NV X X 09/10/02 ELDER BEERMAN STORES CORP OH X 09/12/02 FIFTH THIRD BANCORP OH X X 07/23/02 AMEND FIRST ALBANY COMPANIES INC NY X 09/12/02 FIRST UNION COMMERCIAL MORTGAGE SECUR NC X 08/18/02 FLEXIBLE SOLUTIONS INTERNATIONAL INC NV X 09/05/02 FRANKS NURSERY & CRAFTS INC MI X X 09/12/02 FTD INC DE X 09/12/02 FURNITURE BRANDS INTERNATIONAL INC DE X X 09/12/02 GEORGIA PACIFIC CORP GA X X 09/12/02 GERBER SCIENTIFIC INC CT X 09/12/02 GLATFELTER P H CO PA X 09/11/02 GREENWICH CAPITAL ACCEPTANCE INC DE X 08/28/02 GS MORTGAGE SECURITIES CORP DE X X 09/10/02 HASTINGS ENTERTAINMENT INC TX X 09/12/02 HASTINGS ENTERTAINMENT INC TX X X 09/12/02 HEILIG MEYERS CO VA X 07/31/02 HEILIG MEYERS CO VA X 07/31/02 HYPERTENSION DIAGNOSTICS INC /MN MN X X 09/11/02 IMAGE ENTERTAINMENT INC CA X X 09/10/02 IMAGEX COM INC WA X X 09/11/02 IMH ASSETS CORP IMPAC CMB TRUST SERIE DE X 08/28/02 IMH ASSETS CORP IMPAC CMB TRUST SERIE DE X X 08/28/02 IMH ASSETS CORP IMPAC CMB TRUST SERIE DE X X X 08/28/02 INDUSTRIAL MINERALS INC DE X 09/12/02 INNOVATIVE GAMING CORP OF AMERICA MN X X 09/10/02 INSTINET GROUP INC DE X X 08/26/02 INTER CONTINENTAL SERVICES CORP MO X X X X X 09/12/02 INTERNATIONAL LOTTERY & TOTALIZATOR S CA X 09/12/02 INTERNATIONAL PAPER CO /NEW/ NY X 09/12/02 KANKAKEE BANCORP INC DE X X 08/30/02 KENNAMETAL INC PA X X 08/30/02 KIMBALL INTERNATIONAL INC IN X 09/12/02 KIMBALL INTERNATIONAL INC IN X 09/12/02 KIMBERLY CLARK CORP DE X 09/12/02 LANDRYS RESTAURANTS INC DE X X 09/11/02 LEEDS FEDERAL BANKSHARES X X 08/28/02 MACDERMID INC CT X 09/10/02 MANATRON INC MI X X 09/12/02 MANGOSOFT INC NV X 09/03/02 MEGADATA CORP NY X X 09/12/02 METRETEK TECHNOLOGIES INC DE X X 09/06/02 MIIX GROUP INC DE X 08/28/02 MISSION COMMUNITY BANCORP CA X 09/11/02 MONEY STORE ASSET BACKED CERTIFICATES X X 08/15/02 MONEY STORE HOME EQUITY LOAN TRUST 19 NJ X X 08/15/02 MONEY STORE HOME IMPROVEMENT LOAN BAC X X 08/15/02 MONEY STORE RESIDENTIAL TRUST 1998-I NJ X X 08/15/02 MONEY STORE TRUST 1998 C X X 08/15/02 MORTGAGE PASS THROUGH CERTIFICATES SE DE X X 08/29/02 MSDW STRUCTURED ASSET CORP DPL CAP SE DE X 09/01/02 MSDW STRUCTURED ASSET TR AT&T WIRELES DE X 09/01/02 MSDW STRUCTURED SATURNS SERIES 2001 4 DE X 09/01/02 MSDW STRUCTURED SATURNS SERIES 2002-3 DE X 09/01/02 MSDW STRUCTURED SATURNS SERIES 2002-4 DE X 09/01/02 NETRATINGS INC DE X X 09/11/02 NORDSTROM INC WA X 09/12/02 NORTHRIM BANCORP INC AK X X 09/05/02 NORTHWEST BANCORP INC PA X X 08/28/02 NOVASTAR MORTGAGE FUNDING CORP SERIES DE X X 08/26/02 NOVASTAR MORTGAGE FUNDING TRUST SERIE DE X X 08/26/02 NOVATEL WIRELESS INC DE X 07/17/02 AMEND OAKRIDGE ENERGY INC UT X 09/07/02 ONYX ACCEPTANCE FINANCIAL CORP DE X 08/29/02 P COM INC DE X X 09/09/02 PANAMERICAN BEVERAGES INC R1 X X 08/30/02 PAYPAL INC DE X 08/30/02 PENTACON INC DE X X X 09/10/02 PEPCO HOLDINGS INC DE X 09/12/02 PHOENIX LEASING AMERICAN BUSINESS FUN CA X 08/04/02 AMEND PHOENIX LEASING CASH DISTRIBUTION FUN CA X 08/04/02 AMEND PRESTIGE GROUP NET INC NV X X 09/10/02 PROCTER & GAMBLE CO OH X 06/30/02 PS BUSINESS PARKS INC/CA CA X X 09/11/02 QUALMARK CORP CO X 09/05/02 REALMARK PROPERTY INVESTORS LIMITED P DE X X 08/28/02 RESIDENTIAL ACCREDIT LOANS INC DE X X 09/05/02 RESIDENTIAL ACCREDIT LOANS INC DE X X 09/05/02 RESIDENTIAL ASSET MORTGAGE PRODUCTS I DE X X 09/12/02 RESIDENTIAL ASSET MORTGAGE PRODUCTS I DE X X 03/15/02 RESIDENTIAL FUNDING MORTGAGE SECURITI DE X X 09/11/02 ROYAL PRECISION INC DE X X 09/12/02 SEIBELS BRUCE GROUP INC SC X X 09/10/02 SEIBELS BRUCE GROUP INC SC X X 09/09/02 SEQUOIA RESIDENTIAL FUNDING INC X 09/12/02 SI DIAMOND TECHNOLOGY INC TX X X 09/12/02 SIENA HOLDINGS INC DE X 09/11/02 SILICON LABORATORIES INC DE X 09/12/02 SILICON VALLEY BANCSHARES DE X 09/12/02 SILVERADO GOLD MINES LTD A1 X 09/10/02 SMALL TOWN RADIO INC CO X 09/03/02 AMEND STATEFED FINANCIAL CORP DE X 09/06/02 STERLING BANCSHARES INC TX X X 08/30/02 STEWART & STEVENSON SERVICES INC TX X X 09/12/02 STRUCTURED PRODUCTS CORP DE X 08/15/02 STRUCTURED PRODUCTS CORP DE X 08/01/02 SUN RIVER MINING INC CO X 09/12/02 TELAXIS COMMUNICATIONS CORP MA X X 09/09/02 TELIK INC DE X X 09/12/02 THOMAS INDUSTRIES INC DE X X 08/29/02 TMS MORTGAGE INC NJ X X 08/15/02 TMS MORTGAGE INC NJ X X 08/15/02 TOYS R US INC DE X 08/03/02 TRANSMERIDIAN EXPLORATION INC DE X X 09/10/02 TRAVELERS BANK CREDIT CARD MASTER TRU DE X X 02/08/02 TRIAD AUTOMOBILE RECEIVABLES TRUST 20 DE X X 08/16/02 TRIAD AUTOMOBILE RECEIVABLES TRUST 20 DE X X 08/02/02 TRIAD AUTOMOBILE RECEIVABLES TRUST 20 DE X 08/21/02 TRUSERV CORP DE X X 09/12/02 ULTICOM INC NJ X 09/12/02 UNITED FINANCIAL MORTGAGE CORP IL X 09/12/02 UNITED PAN EUROPE COMMUNICATIONS NV X 09/12/02 VALUE CITY DEPARTMENT STORES INC /OH OH X X 09/12/02 VIADOR INC DE X 09/12/02 VIDEO NETWORK COMMUNICATIONS INC DE X X 05/16/02 AMEND VITAFORT INTERNATIONAL CORP DE X X 08/05/02 WELLS FARGO ASSET SECURITIES CORP DE X X 09/12/02 WELLS REAL ESTATE INVESTMENT TRUST IN MD X 07/01/02 AMEND WEST ESSEX BANCORP INC X 09/11/02 YELLOW CORP DE X 09/11/02 ZENITH NATIONAL INSURANCE CORP DE X 09/04/02