SEC News Digest

COMMISSION ANNOUNCEMENTS

Commission Meetings

Closed Meeting - Thursday, October 8, 2009 - 11:00 a.m.

The subject matter of the Closed Meeting scheduled for Thursday, October 8, will be: institution and settlement of injunctive actions; institution and settlement of administrative proceedings; 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.

RULES AND RELATED MATTERS

Order Approving Application for Relief from a Statutory Disqualification

On Sept. 29, 2009, the Commission issued an Order approving the application of the Financial Industry Regulatory Authority, Inc. (FINRA), for relief from a statutory disqualification to permit David M. Bonrouhi to associate with Fallbrook Capital Securities Corporation (Fallbrook), a member of FINRA. The Order states that, based on the representations made by FINRA and Fallbrook with respect to the supervision of Mr. Bonrouhi and the conditions placed on his employment, the Commission will not institute proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act), and will not direct FINRA to bar the proposed association, as provided in Section 15A(g)(2) of the Exchange Act. (Rel. 34-60730)

ENFORCEMENT PROCEEDINGS

In the Matter of George Tamura

On October 1, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Sections 15(b) and 15B(c)(4) of the Securities Exchange Act of 1934 and Notice of Hearing (Order), against George Tamura (Tamura).

In the Order, the Division of Enforcement alleges that on June 26, 2009, a final judgment was entered against Tamura, permanently enjoining him from future violations of Section 10(b) the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and of Section 17(a) of the Securities Act of 1933, in the civil action entitled SEC v. Terry Richard Martin, et al., Case No. c03-2646-JCC, in the United States District Court for the Western District of Washington. The Division of Enforcement further alleges that Tamura and the company that he worked with, IBIS Securities, LLC, participated in the fraudulent offering of about $20 million in Holmes Harbor Sewer District bonds to over a hundred investors by misstating how the bond proceeds would be used and how IBIS Securities would be compensated.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondent an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions are appropriate and in the public interest.

The Order requires the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rel. 34-60757; File No. 3-13637)

Second Circuit Court of Appeals Affirms Jury Verdict and Remedies Imposed Against Attorney and His Father for Insider Trading

On Sept. 21, 2009, the United States Court of Appeals for the Second Circuit affirmed a jury verdict finding Mitchell S. Drucker, an attorney and former associate general counsel at NBTY, Inc. (NBTY), a nutritional supplements manufacturer and retailer, and his father, Ronald Drucker, liable for violating the antifraud provisions of the federal securities and affirmed the remedies imposed by the federal district court. The Court of Appeals also affirmed the District Court's order of disgorgement against relief defendant William Minerva (Minerva).

The Commission had charged that, while Mitchell Drucker was a lawyer at NBTY, and had learned that NBTY was about to announce lower than expected quarterly earnings, he and his father, a former New York City police detective, sold their entire holdings of NBTY stock just before the negative announcement. Collectively, the defendants avoided $197,243 in losses by selling in advance of the announcement.

On Dec. 3, 2007, a federal jury in the United States District Court for the Southern District of New York found Mitchell Drucker and Ronald Drucker violated the antifraud provisions of the federal securities laws by committing insider trading. The jury found that defendants Mitchell Drucker and Ronald Drucker each violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder (the antifraud provisions).

On Dec. 26, 2007, Judge Colleen McMahon of the United States District Court for the Southern District of New York, entered final judgments against Mitchell Drucker, Ronald Drucker and Minerva. The judgment against defendant Mitchell Drucker permanently enjoined him from violating the antifraud provisions, and barred him from serving as an officer and director of any public company. The judgment also ordered defendant Mitchell Drucker to pay disgorgement and prejudgment interest totaling $201,146, to pay, and be jointly and severally liable with his father, defendant Ronald Drucker for, disgorgement and prejudgment interest totaling $74,411, and to pay, and be jointly and severally liable with his friend, relief defendant Minerva for, disgorgement and prejudgment interest totaling $11,577. The judgment ordered Mitchell Drucker to pay a civil penalty of $394,486, representing two times the combined ill-gotten gains obtained by defendants Mitchell Drucker and Ronald Drucker, and relief defendant Minerva.

The judgment against defendant Ronald Drucker permanently enjoined him from violating the antifraud provisions, and ordered him to pay, and be jointly and severally liable with his son, defendant Mitchell Drucker for, disgorgement and prejudgment interest totaling $74,411.

The judgment against relief defendant William Minerva ordered him to pay, and be jointly and severally liable with his friend, defendant Mitchell Drucker for, disgorgement and prejudgment interest totaling $11,577. [SEC, Appellee, v. Mitchell Drucker and Ronald Drucker, Defendant- Appellants, and William Minerva, Relief Defendant-Appellant, United States Court of Appeals for the Second Circuit Court of Appeals for the Second Circuit, Appeal No. 08-0942-CV; SEC v. Mitchell Drucker And Ronald Drucker, Defendants, And William Minerva, Relief Defendant 06 Civ. 1644 (SDNY) (CM)] (LR-21233)

INVESTMENT COMPANY ACT RELEASES

American Capital, Ltd.

An order has been issued under Section 61(a)(3)(B) of the Investment Company Act on an application filed by American Capital, Ltd. (f/k/a American Capital Strategies, Ltd.). The order approves applicant's proposal to grant certain stock options to non-employee directors under applicant's 2008 stock option plan. (Rel. IC-28935 - September 30)

Columbia Funds Series Trust, et al.

An order has been issued on an application filed by Columbia Funds Series Trust, et al., under Section 6(c) of the Investment Company Act for an exemption from Rule 12d1-2(a) under the Act. The order permits registered open-end investment companies relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-28936 - September 30)

Alpine Global Dynamic Dividend Fund, et al.

An order has been issued on an application filed by Alpine Global Dynamic Dividend Fund, et al., under Section 6(c) of the Investment Company Act, for an exemption from Section 19(b) of the Act and Rule 19b-1 under the Act. The order permits certain registered closed-end investment companies to make periodic distributions of long-term capital gains (i) with respect to their outstanding common shares as frequently as twelve times each year, and (ii) 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-28937 - September 30)

Evergreen Income Advantage Fund, et al.

A notice has been issued giving interested persons until October 26 to request a hearing on an application filed by Evergreen Income Advantage Fund, et al., under Section 6(c) of the Investment Company Act for an exemption from Section 19(b) of the Act and Rule 19b-1 under the Act. The order would permit certain registered closed-end management investment companies to make periodic distributions of long-term capital gains (i) with respect to their common stock as frequently as monthly in any one taxable year, and (ii) with respect to their preferred stock as frequently as required by the terms of such preferred stock. (Rel. IC-28938 - September 30)

SELF-REGULATORY ORGANIZATIONS

Approval Proposed Rule Change

The Commission approved a proposed rule change (SR-NYSEAmex-2009-45) submitted by NYSE Amex amending Rule 476A (Imposition of Fines for Minor Violation(s) of Rules). Publication is expected in the Federal Register during the week of October 5. (Rel. 34-60741)

Proposed Rule Change

The Options Clearing Corporation filed a proposed rule change (SR-OCC-2009-15) under Section 19(b)(1) of the Exchange Act that would revise the minimum eligibility criteria for common stock that can be loaned through OCC Stock Loan Programs and deposited as margin collateral. Publication is expected in the Federal Register during the week of October 5. (Rel. 34-60743)

Immediate Effectiveness of Proposed Rule Change

A proposed rule change filed by the NYSE Amex (SR-NYSEAmex-2009-62) amending Rule 900.3NY 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 5. (Rel. 34-60744)

SECURITIES ACT REGISTRATIONS

• Latest Securities Act registrations (TXT)

RECENT 8K FILINGS

• Latest 8-K filings (TXT)

http://www.sec.gov/news/digest/2009/dig100109.htm