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ENFORCEMENT PROCEEDINGSIn the Matter of Karts Int'l, Inc.An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in Karts Int'l, Inc., Administrative Proceeding No. 3-13160. The Order Instituting Proceedings alleged that three Respondents each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission. The Default Order finds these allegations to be true. It revokes the registrations of each class of registered securities of Karts International, Inc., Keith Group of Companies, Inc., and KMS Industries, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-58811; File No. 3-13160) In the Matter of Paladin Int'l Corp.An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in, Paladin Int'l Corp. Administrative Proceeding No. 3-13171. The Order Instituting Proceedings alleged that five Respondents each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission. The Default Order finds these allegations to be true. It revokes the registrations of each class of registered securities of Paladin International Corp., Pantheon Industries, Inc., Parts.com, Inc., Pathfinder Data Group, Inc., and Pavichevich Brewing Co., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-58812; File No. 3-13171) In the Matter of American Investors NetworkOn October 20, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (Order) against Anne B. Liebermann. The Order finds that on Oct. 7, 2008, a final judgment was entered by consent against Liebermann, a resident of Denver, Colorado, permanently enjoining her from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, in the civil action SEC v. Jarrod McMillin, et al., Civil Action No. 07cv2636-REB-MEH, in the United States District Court for the District of Colorado. The Commission's complaint alleged that, in connection with the sale of advertising program interests in American Investors Network (AIN) and Fairweather Management (Fairweather), which were securities in the form of investment contracts, Liebermann solicited funds from investors as part of the operation of an illegal Ponzi scheme; made false and misleading statements to investors about AIN and Fairweather's business, profits, and use of investor funds; continued to solicit investors after learning of the Commission's investigation of AIN; and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors. The complaint also alleged that Liebermann sold unregistered securities. Based on the above, the Order bars Liebermann from association with any broker or dealer, with the right to reapply for association after three years. Liebermann consented to the issuance of the Order without admitting or denying any of the findings therein except as to the Commission's jurisdiction over her and the subject matter of these proceedings. (Rel. 34-58815; File No. 3-13277) SEC Charges Former Hedge Fund Analyst with Improper TradingThe Commission today charged Brian D. Ladin, a former analyst for Bonanza Master Fund Ltd. (Bonanza), a Dallas-based hedge fund, with improper trading in the U.S. District Court for the District of Columbia. Ladin, without admitting or denying the allegations in the Commission's complaint, agreed to settle charges that he engaged in unlawful insider trading in connection with a 2004 "PIPE" (an acronym for private investment in public equity) offering conducted by Radyne Comstream Inc. As detailed below, Ladin agreed to entry of a final judgment imposing an injunction and ordering him to pay $330,427, consisting of $13,427 in disgorgement and prejudgment interest and a $317,000 civil penalty. The Commission's complaint alleges, among other things, that Ladin accepted a duty to keep the offering information confidential. The Complaint further alleges that Ladin, on the basis of the material, non-public PIPE information, presented an investment in Radyne to Bonanza, resulting in Bonanza establishing a 100,000 share short position in Radyne stock. The Commission's complaint further alleges that Ladin, in signing the offering's stock purchase agreement on behalf of Bonanza, represented that Bonanza did not hold a short position in Radyne common stock when he knew, or was reckless or negligent in not knowing, that Bonanza held a short position in Radyne's common stock. Ladin consented to the entry of a final judgment (i) permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933; (ii) ordering him to pay $10,895 in disgorgement, along with $2,532 in prejudgment interest thereon; and (iii) ordering him to pay a $317,000 civil penalty. Bonanza and its investment adviser, Bonanza Capital, Ltd., consented to the entry of a final judgment ordering them, as relief defendants, to pay a total of $371,429 in ill-gotten gains derived from Ladin's unlawful conduct (and prejudgment interest thereon). [SEC v. Brian D. Ladin et al., Civil Action No. 1:08-CV-01784 (RBW) (D.D.C.)] (LR-20784) Amended Default Judgment Entered Against Spiro Germenis, Oracle Services Inc., Oracle Evolution, LLC, Oracle E Fund, LP, Oracle J Fund, LP, and Oracle Evolution Capital, LLCThe Commission announced today that on Oct. 3, 2008, the United States District Court for the Eastern District of New York entered an amended final judgment by default against defendants Spiro Germenis, Oracle Services Inc., and Oracle Evolution, LLC, and relief defendants Oracle E Fund, LP, Oracle J Fund, LP, and Oracle Evolution Capital, LLC. The judgment enjoins defendants Germenis and Oracle Evolution, LLC, from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Sections 206(1) and (2) of the Investment Advisers Act, and enjoins Oracle Services Inc. from future violations of Sections 206(1) and (2) of the Investment Advisers Act. The Court also orders defendants and relief defendants to pay $7,705,249.83, representing undisgorged profits of $6,500,000 gained as a result of the conduct alleged in the complaint, with prejudgment interest of $1,205,249.83; and orders Germenis and Oracle Evolution, LLC, each to pay a civil penalty of $480,000, and Oracle Services Inc. to pay a civil penalty of $240,000. The Commission had commenced this action by filing its complaint on Nov. 16, 2006. The complaint alleged that Germenis and two entities through which he operated, Oracle Services Inc. and Oracle Evolution, LLC, diverted investors' funds for Germenis's own use, and that Germenis then fled New York. The Commission further alleged that Germenis solicited investments in certain funds he was sponsoring, but instead of depositing the investments into the funds' brokerage accounts, Germenis diverted the investors' funds to his own use. The complaint also alleged that Germenis provided investment management and advisory services for individual clients, but abused those clients' trust by taking money from their accounts for his own use. Finally, the Commission alleged that Germenis created phony or altered account statements that he provided investors to conceal his misuse of the money entrusted to him. On Nov. 17, 2006, the Court issued an order that, among other things, temporarily restrained the defendants from violating certain antifraud provisions of the federal securities laws and directed that the assets of defendants and relief defendants, as well as any assets held by or under the control of the defendants or relief defendants, be frozen. On December 27, 2006, the Court entered a preliminary injunction which extended the temporary restraining order and asset freeze. [SEC v. Spiro Germenis, et al., Civil Action No. 06-6153 (E.D.N.Y.)] (LR-20785) INVESTMENT COMPANY ACT RELEASESVan Kampen Retirement Strategy Trust, et al.An order has been issued on an application filed by Van Kampen Retirement Strategy Trust, Van Kampen Asset Management and Morgan Stanley Investment Management Limited, under Section 12(d)(1)(J) of the Investment Company 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 permits certain registered open-end management investment companies to acquire shares of other registered open-end management investment companies and unit investment trusts that are within and outside the same group of investment companies. (Rel. IC-28440 - October 17) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change (SR-BATS-2008-007) filed by BATS Exchange amending BATS Rule 11.13, entitled "Order Execution," 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 October 20. (Rel. 34-58776) A proposed rule change (SR-BSE-2008-44) filed by the Boston Stock Exchange relating to its minor rule plan 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 October 20. (Rel. 34-58805) A proposed rule change (SR-NASDAQ-2008-082) filed by the NASDAQ Stock Market to temporarily suspend, through January 16, 2009, the continued listing requirements related to bid price and market value of publicly held shares 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 October 20. (Rel. 34-58809) Notice and Order Approving and Declaring Effective an Amendment to the Plan for the Allocation of Regulatory ResponsibilitiesThe American Stock Exchange, BATS Exchange, Boston Stock Exchange, Chicago Board Options Exchange, Chicago Stock Exchange, Financial Industry Regulatory Authority, International Securities Exchange, NASDAQ Stock Market, National Stock Exchange, New York Stock Exchange, NYSE Arca, NYSE Regulation, and Philadelphia Stock Exchange filed a proposed amendment to the plan for the allocation of regulatory responsibilities pursuant to Rule 17d-2 under the Securities Exchange Act of 1934 relating to the surveillance, investigation, and enforcement of insider trading rules (File No. 4-566) and the Commission has approved and declared effective the amended plan pursuant to Rule 17d-2 under the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of October 20. (Rel. 34-58806) Approval of Proposed Minor Rule Violation PlanThe Commission approved a proposed Minor Rule Violation Plan (File No. 4-568) filed by BATS Exchange, pursuant to Section 19(d)(1) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of October 20. (Rel. 34-58807) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2008/dig102008.htm
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