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COMMISSION ANNOUNCEMENTSSEC Announces $185 Million Distribution to Investors Injured by Prudential Securities Market Timing FraudOn March 26, the Securities and Exchange Commission announced a distribution of nearly $185 million to more than 800 mutual funds that were affected by illegal market timing by broker-dealer Prudential Equity Group (then known as Prudential Securities, Inc.), which was the subject of a previous SEC enforcement action. The distribution marks the first in a series of disbursements that will total approximately $270 million — the disgorgement amount that Prudential Equity Group was ordered by the Commission to pay in a settlement of the enforcement action. "This substantial distribution reflects the SEC's ongoing efforts to compensate mutual funds and their shareholders for the harm caused by illegal market timing," said David P. Bergers, Director of the SEC's Boston Regional Office. "We look forward to disbursing the remaining funds in the coming months." The Commission issued an order approving the Prudential Distribution Plan on Feb. 4, 2010. Investors can obtain additional information about the distribution process, including a copy of the Distribution Plan, by visiting http://www.psidistributionfund.com or by calling the Fund Administrator, Rust Consulting, Inc., at (866)-898-5095. (Press Rel. 2010-48) ENFORCEMENT PROCEEDINGSIn the Matter of Sandeep SinghOn March 25, the United States Securities and Exchange 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 against Sandeep Singh. The Order finds that Singh was a registered representative associated with Aura Financial Services, Inc., a broker-dealer registered with the Commission, from January 2003 through June 11, 2009. Additionally, the Order finds that on Feb. 26, 2010, a final judgment was entered against Singh, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled SEC v. Aura Financial Services, Inc., et al., Civil Action Number 09-CIV-21592, in the United States District Court for the Southern District of Florida. The complaint in that civil action alleged that, in approximately June 2007, Singh made untrue statements of material fact to an Aura client. Additionally, the complaint alleged that from Jan. 11, 2008, through Nov. 21, 2008, Singh excessively traded the same client's account for the purposes of generating commissions. The complaint alleged that these actions operated as a fraud and deceit on the investor. Based on the above, the Order bars Singh from association with any broker or dealer, with the right to reapply for association after two years to the appropriate self-regulatory organization, or if there is none, to the Commission. Singh consented to the entry of the Order without admitting or denying the findings in the Order, except for the entry of the injunction, which he admitted. (Rel. 34-61786; File No. 3-13836) Commission Bars Phillip J. Milligan Following Entry of Permanent InjunctionOn March 26, the Commission barred Phillip J. Milligan of New York, a former associated person with J.P. Milligan & Co., a former registered broker dealer, from association with any broker or dealer following the 2009 entry of a permanent injunction against him by the United States District Court for the Eastern District of New York. The Commission found that Milligan had been enjoined for antifraud violations in connection with a fraudulent kickback scheme under which he received more than $93,000 in return for recommending to his customers the purchase of shares of a publicly traded company and that the public interest required that Milligan be barred. In imposing the bar, the Commission found that Milligan's conduct was egregious, repeated, and characterized by a high degree of scienter. (Rel. 34-61790) Commission Dismisses Review Proceeding Brought by Timothy P. Pedregon, Jr.The Commission dismissed the review proceeding of a FINRA member firm's application to continue in membership if it employed Timothy P. Pedregon, Jr., as a registered representative. The member firm's application was necessary because Pedregon is subject to a statutory disqualification. In dismissing the review proceeding, the Commission found that FINRA's denial of the application was in accordance with FINRA's rules and that FINRA applied those rules in a manner consistent with the Securities Exchange Act of 1934. Specifically, the Commission found that FINRA, in rejecting the member firm's application, appropriately considered (i) the seriousness of Pedregon's felonious conduct; (ii) the relatively short time between Pedregon's felony conviction and the member firm's application; (iii) the pendency of Pedregon's probation through January 2017; (iv) Pedregon's failure to have completed court ordered counseling; (v) troubling conduct by Pedregon during his career as an NASD examiner; and (vi) shortcomings in the member firm's proposed supervisory plan. (Rel. 34-61791) INVESTMENT COMPANY ACT RELEASESOrders of Deregistration Under the Investment Company ActOrders have been issued under Section 8(f) of the Investment Company Act declaring that each of the following has ceased to be an investment company:
First Trust/Aberdeen Global Opportunity Income Fund, et al.An order has been issued on an application filed by First Trust/Aberdeen Global Opportunity Income 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 management investment companies to make periodic distributions of long-term capital gains with respect to their common stock as part of a managed distribution plan as frequently as twelve times each year; and with respect to their preferred stock as frequently as required by the terms of such preferred stock. (Rel. IC-29189 - March 24) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change filed by the NASDAQ OMX BX (SR-BX-2010-020) has become effective pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to amend Rule 3121 and redesignate it as Rule 4570 to reflect changes to the corresponding FINRA rule (Custodian of Books and Records). Publication is expected in the Federal Register during the week of March 29. (Rel. 34-61769) A proposed rule change filed by The NASDAQ Stock Market LLC to delay the application of NASDAQ Rule 4611(d) (SR-NASDAQ-2010-039) 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 March 29. (Rel. 34-61770) A proposed rule change filed by the NYSE Amex LLC (SR-NYSEAmex-2010-24) relating to exchange liability has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication of the proposal is expected in the Federal Register during the week of March 29. (Rel. 34-61774) A proposed rule change filed by NYSE Arca, Inc. regarding the listing of the ProShares Ultra MSCI Mexico Investable Market Fund (SR-NYSEArca-2010-17) 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 March 29. (Rel. 34-61775) A proposed rule change filed by NASDAQ OMX PHLX, Inc. to extend its sponsored access pilot program (SR-Phlx-2010-44) 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 March 29. (Rel. 34-61776) The National Securities Clearing Corporation filed a proposed rule change (SR-NSCC-2010-03) under Section 19(b)(1) of the Exchange Act, which rule change became effective upon filing, to expand the eligibility of securities processed through the ID Net Service. Publication is expected in the Federal Register during the week of March 29. (Rel. 34-61783) The Depository Trust Company filed a proposed rule change (SR-DTC-2010-05) under Section 19(b)(1) of the Exchange Act, which rule change became effective upon filing, to update its Settlement Service Guide as it relates to the ID Net Service. Publication is expected in the Federal Register during the week of March 29. (Rel. 34-61784) Proposed Rule ChangeThe NASDAQ Stock Market filed a proposed rule change (SR-NASDAQ-2010-035) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder to establish strike price intervals and trading hours for options on Index-Linked Securities. Publication is expected in the Federal Register during the week of March 29. (Rel. 34-61766) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2010/dig032610.htm
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