SEC News Digest

RULES AND RELATED MATTERS

SEC Approves Extension of Temporary Exemptions Permitting ICE Clear Europe to Operate as Central Counterparty for Credit Default Swaps

On April 23, 2010, the Securities and Exchange Commission approved an extension and modification of temporary exemptions that allow ICE Clear Europe, Limited to operate as a central counterparty for clearing credit default swaps. On July 23, 2009, the SEC previously granted ICE Clear Europe a similar exemption that was scheduled to expire on April 23, 2010. The SEC is soliciting public comment on all aspects of these exemptions to assist in its consideration of any further action that may be needed in this area. (Rel. 34-61973)

SEC Approves Extension and Modification of Temporary Exemptions Permitting Eurex Clearing AG to Operate as Central Counterparty for Credit Default Swaps

On April 23, 2010, the Securities and Exchange Commission approved an extension and modification of temporary exemptions that allow Eurex Clearing AG to operate as a central counterparty for clearing credit default swaps. On July 23, 2009, the SEC previously granted Eurex a similar exemption that was scheduled to expire on April 23, 2010. The SEC's April 23 action extends the exemptions that were set to expire and expands them to address additional credit default swap clearing arrangements. The SEC is soliciting public comment on all aspects of these exemptions to assist in its consideration of any further action that may be needed in this area. (Rel. 34-61975)

ENFORCEMENT PROCEEDINGS

Attorneys Sentenced in Stock Manipulation Scheme

The United States District Court for the Eastern District of Virginia sentenced Texas securities lawyer Phillip W. Offill, Jr. to eight years in prison at a hearing on April 23, 2010. The Department of Justice charged Offill with criminal violations for his participation in a "pump-and-dump" scheme to issue shares to the public illegally while others manipulated the stocks. A jury returned a verdict against Offill on January 28, 2010, finding him guilty of conspiracy to commit securities fraud and nine counts of wire fraud. At the sentencing hearing, the court entered a preliminary order requiring Offill to pay a money judgment of more than $4.8 million that he and others received in the scheme.

The Securities and Exchange Commission also named Offill in two civil injunctive actions currently pending in federal district courts in Michigan and Texas. In the actions, described below, the Commission alleged that Offill violated the registration provisions of the securities laws:

• On June 14, 2007, the Commission filed a complaint in the United States District Court for the Eastern District of Michigan alleging that Offill and Arizona securities attorney David B. Stocker assisted Michigan-based AVL Global, Inc., in a scheme to dump millions of shares of AVL Global stock into the marketplace without any public disclosure of the company's failing operations.


• On September 26, 2007, the Commission filed a complaint in the United States District Court for the Northern District of Texas alleging that Offill, Stocker, four other individuals, and five entities engaged in a scheme to evade the registration requirements of the federal securities laws in connection with their sales of shares of six public companies.

The Commission's civil actions, which have been stayed pending the criminal proceeding, seek additional remedies from Offill, including disgorgement of ill-gotten gains plus interest, civil penalties, and a bar from participating in any future offerings of penny stock.

The Commission earlier named Offill's co-conspirator, attorney David B. Stocker, in three civil injunctive actions in federal district courts in Arizona, Michigan, and Texas. In the actions, the Commission alleged that Stocker violated the antifraud and registration provisions of the securities laws. In early 2009, Stocker consented to final judgments in the Commission's actions and pleaded guilty to criminal charges of conspiracy to commit securities fraud. At a sentencing hearing on March 12, 2010, the United States District Court for the Eastern District of Virginia sentenced Stocker to 33 months in prison and ordered him to pay $6.36 million in restitution.

For further information see Litigation Release Nos. 20154 (June 14, 2007), 20302 (Sept. 27, 2007), 20681 (Aug. 12, 2008), 20944 (Mar. 11, 2009), 20955 (Mar. 13, 2009), 21049 (May 19, 2009), and 21050 (May 19, 2009). [SEC v. Peter W. Fisher, et al., Civil Action No. 07-cv-12552 GER PJK (E.D. Mich; )SEC v. Phillip W. Offill, Jr., et al., Civil Action No. 07-cv-1643-D (N.D. Tex.); SEC v. David B. Stocker, et al., Civil Action No. CIV-08-1475-PHX-FJM (D. Ariz)] (LR-21508)

INVESTMENT COMPANY ACT RELEASES

Pioneer Bond Fund, et al.

An order has been issued on an application filed by Pioneer Bond Fund, 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-29259 - April 27)

WNC Tax Credits 38, LLC, et al.

An order has been issued on an application filed by WNC Tax Credits 38, LLC and WNC Tax Credits 39, LLC (Funds), WNC Housing Tax Credits Manager, LLC and WNC & Associates, Inc. under Sections 6(c) and 6(e) of the Investment Company Act for an exemption from all provisions of the Act, except Sections 37 through 53 of the Act and the rules and regulations under those sections other than Rule 38a-1. The order permits each Fund to invest in limited liability companies that engage in the ownership and operation of apartment complexes for low and moderate income persons. (Rel. IC-29260 - April 27)

SELF-REGULATORY ORGANIZATIONS

Approval of Proposed Rule Changes

The Securities and Exchange Commission has issued an order approving a proposal by Financial Industry Regulatory Authority, as modified by Amendment Nos. 1 and 2 (SR-FINRA-2010-003) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, relating to trade reporting of OTC equity securities and restricted equity securities. Publication is expected in the Federal Register during the week of April 26. (Rel. 34-61979)

The Commission granted approval of a proposed rule change (SR-ISE-2010-19) submitted by the International Securities Exchange pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, to list and trade options on the ETFS Palladium Trust and the ETFS Platinum Trust. Publication is expected in the Federal Register during the week of April 26. (Rel. 34-61983)

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change (SR-Phlx-2010-60) filed by NASDAQ OMX PHLX relating to QNET Sector Index Option Fees 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 April 26. (Rel. 34-61984)

A proposed rule change filed by The NASDAQ Stock Market relating to the opening of trading in the NASDAQ Options Market (SR-NASDAQ-2010-050) 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 April 26. (Rel. 34-61991)

A proposed rule change filed by The NASDAQ Stock Market to amend the by-laws of The NASDAQ OMX Group, Inc. (SR-NASDAQ-2010-048) 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 April 26. (Rel. 34-61992)

SECURITIES ACT REGISTRATIONS

• Latest Securities Act registrations (TXT)

RECENT 8K FILINGS

• Latest 8-K filings (TXT)

http://www.sec.gov/news/digest/2010/dig042810.htm