 |
Home | Previous Page | |
|
||
 |
|
|
|
||
 |
|
|
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
COMMISSION ANNOUNCEMENTSSEC and Japan Financial Services Agency Hold Meeting of the SEC-JFSA Strategic DialogueSecurities and Exchange Commission Chairman Mary Schapiro and Japan Financial Services Agency (JFSA) Commissioner Katsunori Mikuniya met in Washington, D.C., this week as part of the annual SEC-JFSA Bilateral High-level Dialogue. The purpose of the Dialogue, established in 2006, is to provide a forum whereby the senior officials of the two agencies can meet to identify and discuss issues of common concern affecting the U.S. and Japanese capital markets and promote areas of future collaboration. In addition to the meeting between the heads of the two agencies, the Dialogue included a full day of meetings between senior staff from the SEC and the JFSA for discussions on a variety of important topics. These meetings were chaired by SEC Commissioner Kathleen Casey, JFSA Commissioner Mikuniya and JFSA Vice Commissioner for International Affairs Masamichi Kono. Following the Dialogue, SEC and JFSA staff also held discussions. Some of the areas of mutual interest discussed during the Dialogue included:
During their June 29 meeting, Chairman Schapiro and Commissioner Mikuniya reaffirmed their commitment to close cooperation between their agencies, particularly in the area of market supervision, to ensure market integrity in the increasingly interconnected global financial marketplace. The Dialogue also provided the opportunity for the SEC and the JFSA to discuss collaboration on the ongoing work on the multilateral front such as that currently underway in the International Organization for Securities Commissions (IOSCO). SEC Chairman Schapiro said, "Building on our traditionally close relationship with our JFSA colleagues is essential, particularly as we consider significant reforms to our own regulatory system. In an era of global and interconnected capital markets, we cannot fully protect investors here without the help of expert regulators in other major capital markets like Japan." JFSA Commissioner Mikuniya said, "Developments in the market over the past few years suggest the increasing need for securities regulators to cooperate globally, especially with regard to regulations on hedge funds, clearing houses, and credit rating agencies, among others. In this context, it is ever more important for the JFSA and the SEC to work together in addressing various challenges. Regular dialogues between the two regulators provide a good opportunity for candid exchange of views and useful discussions on how to achieve good regulation and supervision. I would like to thank SEC's hospitality today and hope to continue the dialogue to further enhance cooperation between the two parties." SEC Commissioner Casey said, "The JFSA is one of our most important partners in the ongoing discussions in IOSCO and at the Financial Stability Board in developing coherent international approaches to regulatory reform in the wake of the recent financial crisis. I am pleased by the proactive stance the JFSA has taken in various standard-setting initiatives at the IOSCO, such as Standing Committee on Credit Rating Agencies and Task Forces on Supervisory Cooperation and on Short Selling. Today's meeting of the Dialogue provided an excellent opportunity for us to further coordinate our efforts in these important initiatives." JFSA Vice Commissioner Kono said, "I highly appreciate this opportunity where the two regulators can meet face to face to directly confirm and share the common goals and concerns regarding a wide range of current issues and challenges. I believe such close dialogues will also help communication on a virtual basis and build foundation for our work ahead, both in a bilateral context and through activities at international bodies." (Press Rel. 2010-118) ENFORCEMENT PROCEEDINGSIn the Matter of Qais R. BhavnagariOn July 1, 2010, the Commission issued an Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934, (Order) against Qais R. Bhavnagari. The Order finds that Bhavnagari was a registered representative associated with Aura Financial Services, Inc. (Aura), a broker-dealer registered with the Commission, from May 2005 through May 2009. Additionally, the Order finds that on March 15, 2010, a final judgment was entered against Bhavnagari, 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 between September 2007 and September 2008, Bhavnagari made false or misleading statements of material facts to Aura clients. Additionally, the complaint alleged that from January 2008 through March 2009, Bhavnagari "churned" the accounts of Aura clients by engaging in excessive trading to generate commissions for himself rather than in the clients' interests. The complaint alleged that these actions operated as a fraud and deceit on the investors. Based on the above, the Order bars Bhavnagari from association with any broker or dealer, with the right to reapply for association after three (3) years to the appropriate self-regulatory organization, or if there is none, to the Commission. Bhavnagari consented to the issuance of the Order without admitting or denying the findings in the Order, except for the entry of the injunction, which he admitted. (Rel. 34-62438; File No. 3-13846) In the Matter of BVR Technoligies Ltd.An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default as to Six Respondents (Default Order) in BVR Technologies Ltd., Administrative Proceeding No. 3-13892. The Order Instituting Proceedings (OIP) alleged that seven Respondents failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission (Commission). The Default Order finds these allegations to be true as to six Respondents. It revokes the registrations of each class of registered securities of BVR Technologies Ltd. (n/k/a Technoprises Ltd.), Crystal Graphite Corp., Devine Entertainment Corp., National Construction, Inc. (n/k/a E.G. Capital, Inc.), SHEP Technologies, Inc., and WHEREVER.net Holding Corp., pursuant to Section 12(j) of the Securities Exchange Act of 1934 The Commission previously accepted a settlement offer from Respondent Gee-Ten Ventures, Inc., the seventh Respondent named in the OIP. . (Rel. 34-62439; File No. 3-13892) In the Matter of Stephen Michael AlexanderOn July 2, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order) against Stephen Michael Alexander. The Order finds that on March 16, 2010, Alexander, age 59, pled guilty to two counts of wire fraud in violation of Title 18 United States Code, Section 1343, and one count of money laundering in violation of Title 18 United States Code, Section 1956 before the United States District Court for the Eastern District of Pennsylvania, in U.S. v. Michael Alexander, Crim. Information No. 2:10 CR-00038-TJS (March 16, 2010). The Order also finds that the criminal information to which Alexander pled guilty alleged, among other things, that Alexander sought investors by falsely claiming that he operated Hartford Investments, Inc. as a hedge fund and that he further falsely claimed that he managed approximately $300 million from approximately 28 clients, including $17 million of his own money. Alexander offered to manage investors' funds in exchange for 10 percent of each investor's net profits. Alexander told investors that their money would be kept in separate accounts, when in fact he commingled their funds with other investor funds and his own funds. Alexander also sent out false statements to his clients showing that the value of their investments was consistently increasing. In reality, Alexander invested some funds in investments that lost money, and used much of the money for his own personal living expenses. In total, Alexander raised approximately $12 million. As part of his plea, Alexander agreed to pay full restitution in the amount of $7.5 million. Based on the above, the Order bars Alexander from association with any investment adviser. Alexander consented to the issuance of the Order without admitting or denying any of the findings contained in the Order except for his criminal conviction, which he admitted. (Rel. IA-3044; File No. 3-13953) Securities and Exchange Commission v. Aaron Donald VallettOn July 2, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act against Aaron Donald Vallett (the Order). In the Order, the Division of Enforcement alleges that a permanent injunction was entered against Vallett on June 9, 2010, in a civil action styled SEC v. Vallett, et al., Case No. 3:10-cv-00551 (M.D. TN), enjoining Vallett from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and (2) of the Investment Advisers Act of 1940. The Division of Enforcement further alleges in the Order that the complaint filed in the civil action alleged that Vallett raised a total of $5.5 million dollars from around 20 investors by operating a Ponzi scheme from September 2008 through April 2010. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Respondent an opportunity to defend these allegations, and to determine what, if any, remedial sanctions are appropriate and in the public interest. The Order directs the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rels. 34-62440; IA-3045; File No. 3-13954) In the Matter of Gary R. HeaddingOn July 2, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order). The Order finds that on June 23, 2010, a final judgment was entered by consent against Gary R. Headding (Headding) in the civil action entitled Securities and Exchange Commission v. Envision Direct L.L.C. and Gary R. Headding, Civil Action Number SACV 10-00241 JVS (MLGx), in the United States District Court for the Central District of California. The Commission's complaint alleged that Headding committed fraud when he withdrew unauthorized fees and stole from clients. In particular, the complaint alleged that he withdrew unauthorized advisory fees of nearly $50,000 from three clients between March and August 2007. Furthermore, the complaint alleged that he stole approximately $274,000 from two of these clients between April 2007 and May 2008. Finally, the complaint alleged that Headding aided and abetted Envision Direct's failure to maintain records required to be made and kept by a registered investment advisor. Based on the above, the Order bars Headding from association with any broker, dealer, or investment adviser. Headding consented to the issuance of the Order without admitting or denying any of the findings except that he admitted the entry of the final judgment. (Rels. 34-62446; IA-3046; File No. 3-13955) In the Matter of Appaloosa Management L.P.On Jul. 2, 2010, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions and a Cease and Desist Order (the Order) against Appaloosa Management L.P. (Appaloosa Management). The Order finds that Appaloosa Management, an unregistered investment adviser, violated Rule 105 of Exchange Act Regulation M (Rule 105), which prohibits short selling securities during a restricted period (generally defined as five business days before the pricing of a secondary offering) and then purchasing the same security in a public offering. The Order finds that Appaloosa Management, through two hedge funds that it managed, willfully violated Rule 105 when it participated in a public offering of stock by Wells Fargo & Co. (Wells Fargo) after engaging in short sales of Wells Fargo during the restricted period. Specifically, the Order finds that between Oct. 31 and Nov. 5, 2008, Appaloosa Management sold short a total of 1,034,896 shares of Wells Fargo stock. Following the close of the market on Nov. 5, 2008, Wells Fargo announced a public offering of stock, and on Nov. 6, 2008, Appaloosa Management purchased 125,000 shares of Wells Fargo stock in the offering. The Order censures Appaloosa Management and requires Appaloosa Management to cease and desist from committing or causing any violations and any future violations of Rule 105. The Order also requires Appaloosa Management to comply with certain remedial undertakings, including adopting, implementing and maintaining written compliance policies and procedures reasonably designed to prevent violations of Rule 105. Appaloosa Management will pay $842,500 in disgorgement, $40,773.34 in prejudgment interest, and a $421,250 civil money penalty. Appaloosa Management consented to the issuance of the Order without admitting or denying any of the findings contained therein. (Rels. 34-62447; IA-3047; File No. 3-13956) SEC Files Injunctive Action Against Travis L. Wright for $145 Million Offering FraudThe Commission today announced the filing of a complaint in federal district court against Travis L. Wright, of Salt Lake City, Utah, based on his having carried out an offering fraud in which he raised nearly $145 million from approximately 175 investors. Wright sold these investors promissory notes issued by Waterford Loan Fund, LLC (Fund) that were purportedly secured by a lien on a trust that held all the assets of the Fund. The Fund and its affiliate Waterford Funding, LLC are currently under the supervision of a Chapter 11 trustee, and their assets are being liquidated for the benefit of creditors. In re Waterford Funding LLC and Waterford Loan Fund, LLC, case no. 09-22584 (D. Utah). The complaint alleges that, in raising these funds, Wright made numerous material misrepresentations to investors, including the following: 1) he assured them that their funds would be used only to make loans secured by commercial real estate, when in fact he used their funds primarily for loans and investments having nothing to do with real estate; 2) he represented to them that their promissory notes were secured by interests in a trust, but no such trust existed, and the notes were not secured; and 3) he represented that Waterford would never lend more than 50% of the value of the real estate in question. Wright also omitted to disclose to investors 1) that he never obtained an appraisal or valuation of real estate before lending investor funds against it; and 2) that he was using investor funds to pay for a lavish lifestyle for himself and his friends and family. The Commission's complaint charges Wright with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder. The complaint seeks an injunction, disgorgement, prejudgment interest and a civil penalty, and the issuance of an order prohibiting Wright from offering, selling or soliciting the sale of securities in a private or public offering, except for purchases or sales of securities by him for a personal account maintained at a broker or dealer registered with the Commission. [SEC v. Travis L. Wright, Civil Action No. 2:10-cv-00602-CW (D. Utah )] (LR-21586) INVESTMENT COMPANY ACT RELEASESEQ Advisors Trust, et al.An order has been issued on an application filed by EQ Advisors Trust, et al. under Section 12(d)(1)(J) of the Investment Company Act for an exemption from Sections 12(d)(1)(A) and (B) of the Act, under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act, and under Section 6(c) of the Act for an exemption from Rule 12d1-2(a) under the Act. The order (a) permits certain registered open-end management investment companies to acquire shares of certain registered open-end management investment companies and unit investment trusts that are within and outside the same group of investment companies as the acquiring investment companies, and (b) permits certain series of registered open-end management investment companies relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-29336 - June 30) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change (SR-BX-2010-042) filed by NASDAQ OMX BX to amend the BOX LLC Agreement has become effective under Section 19(b)(3)(A) under the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62400) A proposed rule change (SR-Phlx-2010-80) filed by the NASDAQ OMX PHLX relating to the options floor broker subsidy 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 July 5. (Rel. 34-62403) A proposed rule change filed by BATS Exchange to amend BATS Rule 11.13, entitled "Order Execution," (SR-BATS-2010-017) 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 July 5. (Rel. 34-62404) A proposed rule change, as modified by Amendment No. 1, filed by NYSE Amex (SR-NYSEAmex-2010-59) relating to Market Maker Authorized Traders 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 July 5. (Rel. 34-62405) A proposed rule change (SR-NYSEArca-2010-63) filed by NYSE Arca amending its fee schedule 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 July 5. (Rel. 34-62422) A proposed rule change filed by the EDGX Exchange (SR-EDGX-2010-04) relating to implementing fees for use of EDGX Exchange, Inc. 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 July 5. (Rel. 34-62424) A proposed rule change filed by the EDGA Exchange (SR-EDGA-2010-04) relating to implementing fees for use of EDGA Exchange, Inc. 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 July 5. (Rel. 34-62425) Proposed Rule ChangesNYSE Arca filed a proposed rule change (SR-NYSEArca-2010-56) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to list and trade shares of the ETFS Precious Metals Basket Trust. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62402) BATS Exchange filed a proposed rule change under Rule 19b-4 (SR-BATS-2010-18) to amend BATS Rule 11.18, entitled "Trading Halts Due to Extraordinary Market Volatility." Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62407) Chicago Stock Exchange filed a proposed rule change under Rule 19b-4 (SR-CHX-2010-14) to amend the list of securities subject to an individual circuit breaker. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62408) Chicago Board Options Exchange filed a proposed rule change under Rule 19b-4 (SR-CBOE-2010-065) related to individual stock trading pauses due to extraordinary market volatility. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62409) National Stock Exchange filed a proposed rule change under Rule 19b-4 (SR-NSX-2010-08) to include additional securities in the trading halt pilot program under Exchange Rule 11.20B. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62410) Accelerated Approval of Proposed Rule ChangeThe Commission noticed and granted accelerated approval to a proposed rule change (SR-NASDAQ-2010-081) submitted by The NASDAQ Stock Market pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 to extend the NASDAQ Last Sale Data Feeds pilot program. Publication is expected in the Federal Register during the week of July 5. (Rel. 34-62428) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2010/dig070210.htm
|