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ENFORCEMENT PROCEEDINGSSecurities and Exchange Commission Orders Hearing on Registration Suspension or Revocation Against Five Public Companies for Failure to Make Required Periodic FilingsOn Aug. 2, 2010, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registrations of each class of the securities of five companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the five issuers are delinquent in their required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the Administrative Law Judge will hear evidence from the Division and the Respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The Administrative Law Judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these Respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-62627; File No. 3-13990) SEC Charges Texas Registered Representative With Misappropriating Hundreds of Thousands of Dollars from Fifteen Brokerage Customers and Advisory ClientsOn Aug. 2, 2010, the Securities and Exchange Commission filed a partially settled civil injunctive action against Gregory Todd Froning, a Coppell, Texas-based registered representative, accusing him of misappropriating over $800,000 from fifteen investors with whom he had pre-existing brokerage and advisory relationships. Froning consented on a neither-admit-nor-deny basis to the entry of a permanent injunction prohibiting him from violating Section 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), and Rule 10b-5 thereunder. The injunction is subject to court approval. The Commission's civil complaint, filed in federal district court in Dallas, alleges that between 2005 and 2009 Froning solicited fifteen individuals through an unregistered offering of promissory notes secured by rights to convert to equity interests in a now-defunct financial planning company Froning owned. While Froning represented to investors that offering proceeds would be used to fund operating expenses and growth of the financial planning company, he diverted the proceeds to a personal bank account and used them to pay for personal expenses such as cash withdrawals, purchases from internet retailers, adult entertainment, meals, and groceries. He also used investor funds to make Ponzi payments to some investors. The complaint alleges that, as a result of his misconduct, Froning violated the antifraud provisions of both the Securities and the Exchange Act. Pending court approval of the injunction, the court will also determine the amount of disgorgement and civil money penalties to be assessed against Froning. Finally, upon the court's entry of the injunction, the Commission will institute settled administrative proceedings against Froning. Froning has agreed to an administrative order barring him from future association with any broker, dealer, or investment adviser. The Commission acknowledges the assistance of the Texas State Securities Board and the Financial Industry Regulatory Authority in this matter. [SEC v. Gregory Todd Froning, Civil Action No. 3:10-cv-01503; USDC, N.D.Tex., Dallas Division] (LR-21610) INVESTMENT COMPANY ACT RELEASESGE Asset Management Incorporated and GE Investment Distributors, Inc.The Commission has issued a temporary order to GE Asset Management Incorporated (GEAM) and GE Investment Distributors, Inc. (GEID) under Section 9(c) of the Investment Company Act with respect to an injunction issued against General Electric Company (GE), Ionics, Inc. (Ionics), and Amersham plc (Amersham) by the U.S. District Court for the District of Columbia on July 30, 2010. The temporary order exempts GEAM and GEID, as well as companies of which GE, Ionics, or Amersham is or becomes an affiliated person, from the provisions of Section 9(a) of the Act until the Commission takes final action on an application for a permanent order. The Commission also has issued a notice giving interested persons until August 24, 2010, to request a hearing on the application filed by applicants for a permanent order under Section 9(c) of the Act. (Rel. IC-29374 - July 30) Millington Securities, Inc., et al.A notice has been issued giving interested persons until Aug. 24, 2010, to request a hearing on an application filed by Millington Securities, Inc., et al. for an order under Section 12(d)(1)(J) of the Investment Company Act for an exemption from Sections 12(d)(1)(A), (B) and (C) of the Act and under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act. The order would permit certain registered unit investment trusts to acquire shares of registered management investment companies and unit investment trusts both within and outside the same group of investment companies. (Rel. IC-29375 - July 30) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change filed by Chicago Board Options Exchange to amend its Minor Rule Violation Plan (SR-CBOE-2010-069) 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 August 2. (Rel. 34-62602) A proposed rule change filed by International Securities Exchange relating to a stated interpretation of the meaning, administration, and enforcement of Rule 2128 (SR-ISE-2010-80) 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 August 2. (Rel. 34-62607) A proposed rule change filed by Financial Industry Regulatory Authority relating to a stated interpretation of the meaning, administration, and enforcement of FINRA Rule 11892 and Supplementary Material .01 (SR-FINRA-2010-038) 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 August 2. (Rel. 34-62608) A proposed rule change filed by the NASDAQ Stock Market to modify Nasdaq Rule 7017(b) (SR-NASDAQ-2010-093) 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 August 2. (Rel. 34-62614) A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2010-103) to add seventy-five options classes to the Penny Pilot Program 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 August 2. (Rel. 34-62616) A proposed rule change filed by The NASDAQ Stock Market (SR-NASDAQ-2010-092) to add seventy-five options classes to the Penny Pilot Program 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 August 2. (Rel. 34-62617) A proposed rule change (SR-NASDAQ-2010-088), filed by The NASDAQ Stock Market relating to fees for routing to away markets 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 August 2. (Rel. 34-62618) A proposed rule change (SR-NFA-2010-02) filed by the National Futures Association relating to amendments to the Interpretive Notice entitled "NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts." has become effective. Publication is expected in the Federal Register during the week of August 2. (Rel. 34-62624) Approval of Proposed Rule ChangesThe Commission approved a proposed rule change submitted by The NASDAQ Stock Market (SR-NASDAQ-2010-068), pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, to establish a revenue sharing program with Correlix, Inc. Publication is expected in the Federal Register during the week of August 2. (Rel. 34-62605) The Commission approved a proposed rule change (SR-NYSEArca-2010-51) filed under Rule 19b-4 by NYSE Arca relating to listing and trading of WisdomTree Dreyfus Commodity Currency Fund under NYSE Arca Equities Rule 8.600. Publication is expected in the Federal Register during the week of August 2. (Rel. 34-62623) Proposed Rule ChangeNYSE Arca filed a proposed rule change (SR-NYSEArca-2010-71) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to list and trade shares of the ETFS White Metals Basket Trust. Publication is expected in the Federal Register during the week of August 2. (Rel. 34-62620) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2010/dig080310.htm
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