SEC News Digest

ENFORCEMENT PROCEEDINGS

In the Matter of Gene T. Mancinelli

On May 21, 2001, 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 Gene T. Mancinelli. On May 3, 2010, a final judgment was entered by consent against Mancinelli, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and aiding and abetting violations of Section 15(c) of the Exchange Act and Rule 10b-3 thereunder, in the civil action entitled SEC v. Gene T. Mancinelli, Civil Action Number 06-CV-7885, in the United States District Court for the Southern District of New York. The Order finds that Mancinelli, 49 years old, is a resident of New York, New York, and he was a registered representative at Wall Street Access, a registered broker-dealer located in New York, from March 2001 to May 2002. The Order finds that the complaint in SEC v. Mancinelli alleged that Mancinelli and his customers defrauded mutual funds by engaging in late trading and by deceptively market timing mutual funds. The complaint also alleged that from approximately April 2001 through October 2001, Mancinelli and others acting at his direction accepted and executed more than 2,000 late trades in mutual funds for a hedge fund customer. The complaint also alleged that Mancinelli and his market timing customers utilized deceptive tactics to deceive mutual funds and facilitate these customers' market timing strategies. The complaint also alleged that Mancinelli and Wall Street Access benefited from the late trading and market timing through, among other things, the fees Mancinelli's customers paid. At the same time, the mutual funds were harmed by the market timing and late trading of Mancinelli and his customers.

Based on the above, the Order bars Mancinelli from association with any broker or dealer with the right to reapply for association after three years. Mancinelli consented to the issuance of the Order without admitting or denying any of the findings in the Order except as to the entry of the final judgment. (Rel. 34-62153; File No. 3-13911)

Commission Revokes Registration of Securities of Biltmore Vacation Resorts, Inc. (n/k/a Absolutesky, Inc.) for Failure to Make Required Periodic Filings

On May 24, 2010, the Commission revoked the registration of each class of registered securities of Biltmore Vacation Resorts, Inc. (n/k/a AbsoluteSKY, Inc.) (Biltmore Vacation Resorts) for failure to make required periodic filings with the Commission.

Without admitting or denying the findings in the Order, except as to jurisdiction, which it admitted, Biltmore Vacation Resorts consented to the entry of an Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to Biltmore Vacation Resorts, Inc. (n/k/a AbsoluteSKY, Inc.) finding that it had failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of Biltmore Vacation Resorts's securities pursuant to Section 12(j) of the Exchange Act. This order settled the charges brought against Biltmore Vacation Resorts in In the Matter of BFA Liquidation Trust, et al., Administrative Proceeding File No. 3-13834.

Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows:

No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . .

For further information see Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, In the Matter of BFA Liquidation Trust, et al., Administrative Proceeding File No. 3-13834, Exchange Act Release No. 61773 (March 24, 2010). (Rel. 34-62154; File No. 3-13834)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Change

A proposed rule change filed by NASDAQ OMX PHLX relating to the applicability of fees (SR-Phlx-2010-69) 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 May 24. (Rel. 34-62140)

A proposed rule change filed by New York Stock Exchange (SR-NYSE-2010-38) deleting NYSE Rule 413 to correspond with rule changes filed by the Financial Industry Regulatory Authority, Inc. 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 May 24. (Rel. 34-62142)

A proposed rule change filed by Financial Industry Regulatory Authority (SR-FINRA-2010-023) to update certain cross-references and make a non-substantive technical change to a FINRA rule 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 May 24. (Rel. 34-62146)

Accelerated Approval of Proposed Rule Change

The Commission has issued an order granting accelerated approval to a proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-2010-036) to permit $1 strikes for options on Trust Issued Receipts. Publication is expected in the Federal Register during the week of May 24. (Rel. 34-62141)

Approval of Proposed Rule Change

The Commission approved a proposed rule change (SR-Phlx-2010-43) submitted by NASDAQ OMX PHLX pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to quote spread parameters and batching of violations. Publication is expected in the Federal Register during the week of May 24. (Rel. 34-62147)

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http://www.sec.gov/news/digest/2010/dig052410.htm