SEC News Digest

COMMISSION ANNOUNCEMENTS

SEC Suspends Trading in the Securities of ACT Clean Technologies, Inc.

The Commission today announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934, of trading in the securities of ACT Clean Technologies, Inc. (ACT), at 9:30 a.m. EDT, May 25, 2010, through 11:59 p.m. EDT, on June 8, 2010. The Commission temporarily suspended trading in the securities of ACT because of questions concerning the accuracy and adequacy of publicly available information about ACT securities, including information in the market place concerning (1) British Petroleum's purported expression of interest in using a so-called oil fluidizer technology purportedly licensed to ACT's wholly-owned subsidiary, American Petroleum Solutions, Inc., for use in cleanup operations in the Gulf of Mexico, and its purported request that field tests be conducted on the oil fluidizer technology; and (2) the purported results of field tests finding that the oil fluidizers are effective for use in clean up efforts in the Gulf of Mexico. ACT securities are quoted on the Pink OTC Markets, Inc. under the trading symbol ACLH. See In the Matter of ACT Clean Technologies, Inc. (Rel. 34-62166)

ENFORCEMENT PROCEEDINGS

In the Matter of Valesc Holdings, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in Valesc Holdings, Inc., Administrative Proceeding No. 3-13865. The Order Instituting Proceedings alleged that 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 the allegations to be true as to all Respondents. It revokes the registrations of each class of registered securities of Valesc Holdings, Inc., Venture Stores, Inc., visionGATEWAY, Inc., and Vital Health Technologies, Inc. (n/k/a Caribbean American Health Resorts), pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-62163; File No. 3-13865)

Commission Revokes Registrations of Securities of PT. Riau Andalan Pulp & Paper for Failure to Make Required Periodic Filings

On May 25, 2010, the Commission revoked the registrations of each class of registered securities of PT. Riau Andalan Pulp & Paper 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, PT. Riau Andalan Pulp & Paper 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 PT. Riau Andalan Pulp & Paper 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-16 thereunder and revoking the registration of each class of PT. Riau Andalan Pulp & Paper's securities pursuant to Section 12(j) of the Exchange Act. This order settled the proceedings brought against PT. Riau Andalan Pulp & Paper in In the Matter of Platinum & Gold, Inc., et al., Administrative Proceeding File No. 3-13783.

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 more 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 Platinum & Gold, Inc., et al., Administrative Proceeding File No. 3-13783, Exchange Act Release No. 61532, Feb. 18, 2010. (Rel. 34-62164; File No. 3-13783)

Commission Revokes Registrations of Securities of PT. Inti Indorayon Utama (n/k/a P.T. Toba Pulp Lestari Tbk) for Failure to Make Required Periodic Filings

On May 25, 2010, the Commission revoked the registration of each class of registered securities of PT. Inti Indorayon Utama (n/k/a P.T. Toba Pulp Lestari Tbk) 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, PT. Inti Indorayon Utama (n/k/a P.T. Toba Pulp Lestari Tbk) 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 PT. Inti Indorayon Utama (n/k/a P.T. Toba Pulp Lestari Tbk) 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-16 thereunder and revoking the registration of each class of PT. Inti Indorayon Utama (n/k/a P.T. Toba Pulp Lestari Tbk)'s securities pursuant to Section 12(j) of the Exchange Act. This order settled the proceedings brought against PT. Inti Indorayon Utama (n/k/a P.T. Toba Pulp Lestari Tbk) in In the Matter of Platinum & Gold, Inc., et al., Administrative Proceeding File No. 3-13783.

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 Platinum & Gold, Inc., et al., Administrative Proceeding File No. 3-13783, Exchange Act Release No. 61532, Feb.18, 2010. (Rel. 34-62165; File No. 3-13783)

Court Orders Chaim Justman, Pinchus Gold and William J. Reilly to Disgorge Proceeds of Fraud and to Pay Civil Penalties

The Securities and Exchange Commission announced that on May 19, 2010, the United States District Court for the Southern District of New York entered a judgment ordering Chaim Justman, of Brooklyn, New York, Pinchus Gold, also of Brooklyn, New York, and William J. Reilly, of Boca Raton, Florida, an attorney admitted to practice in New York. The judgment ordered the defendants to disgorge their ill-gotten gains and prejudgment interest, and ordered each to pay a third tier civil penalty.

In imposing the judgment, Judge Jed S. Rakoff found that Justman, Gold, and Reilly had "engaged in an elaborate fraudulent scheme over the course of six months that manipulated a publicly traded stock, resulting in the eventual collapse of the stock price," and which "which resulted in hundreds of thousand dollars of ill-gotten gains for the individual defendants [and] risked and, in fact, caused 'substantial' losses to others."

The Commission's complaint alleged that Justman, Gold, and Reilly made material misrepresentations concerning Forest Resources Management Corp. to Forest's transfer agent in order to obtain millions of restricted shares without the required restricted legend. Justman, Gold, Reilly, and their nominees then sold these unlegended shares on the open market, falsely holding them out to the investing public as free-trading shares, when in fact they were restricted stock. In addition, Forest, Justman, Gold, and Reilly made materially false statements and failed to disclose material facts to investors. Justman, Gold, and Reilly previously consented to the entry of judgments, according to which the Commission's allegations were neither admitted nor denied, and which enjoined each of them from future violations of the federal securities laws. Justman and Reilly were also barred from serving as officers or directors of any public company, and all three defendants were barred from participating in the sale of any penny stock.

Justman was ordered to disgorge the profits from the sale of his shares of Forest of $219,199.69 together with $41,919.49 in prejudgment interest, for a total of $261,119.18. Gold was ordered to disgorge his profits of $654,887.93 and $127,158.83 in prejudgment interest, for a total of $782,046.75. Reilly was ordered to disgorge his profits of $84,512.73 and prejudgment interest of $18,456.62, for a total of $102,969.35. In addition, Judge Rakoff imposed a third-tier civil penalty of $130,000 on each individual defendant.

For further information, see Litigation Release No. 20878 (Feb. 2, 2009), Litigation Release No. 20980 (Mar. 31, 2009), Litigation Release No. 21080 (June 11, 2009), and Litigation Release No. 21252 (Oct. 16, 2009). [SEC v. Forest Resources Management Corp., et al., Civil Action 09 Civ. 903 (JSR) (SDNY)] (LR-21531)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NYSE Amex (SR-NYSEAMEX-2010-45) deleting Rule 413 - NYSE Amex Equities 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. 34-62143)

A proposed rule change filed by the International Securities Exchange (SR-ISE-2010-41) relating to professional customer 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 May 24. (Rel. 34-62152)

A proposed rule change filed by NASDAQ OMX PHLX relating to the Risk Management Interface (SR-Phlx-2010-67) 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. 34-62155)

Proposed Rule Change

The Commission issued notice of a proposed rule change submitted by NASDAQ OMX PHLX (SR-Phlx-2010-72) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 to expand the $1 Strike Program. Publication is expected in the Federal Register during the week of May 24. (Rel. 34-62151)

Approval of Proposed Rule Change

The Commission approved a proposed rule change (SR-NYSEArca-2010-28) submitted by NYSE Arca amending its schedule of fees. Publication is expected in the Federal Register during the week of May 24. (Rel. 34-62157)

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