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ENFORCEMENT PROCEEDINGSIn the Matter of Richard Jonathan BlechOn Aug. 11, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Notice of Hearing (Order) against Richard Jonathan Blech. The Division of Enforcement alleges in the Order that Blech was the Chief Executive Office or Credit Bancorp, Ltd. (Credit Bancorp), a Netherlands Antilles corporation and was a principal and registered representative with Credit Bancorp & Co., a Credit Bancorp affiliate, during the time it was registered as a broker-dealer with the Commission. The Division also alleges that Blech plead guilty to three counts of securities fraud and fraud by wire, radio or television in violation of 15 U.S.C. §§ 78(j), 1343 and 1346 before the United States District Court for the Southern District of New York, U.S. v. Blech, et al., 1:02-CR-122 and that on June 24, 2005, a criminal judgment was entered against Blech. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Blech an opportunity to respond to those allegations, and to determine what sanctions, if any, are appropriate and in the public interest. The Order directs the administrative law judge to issue an initial decision within 210 days from the date of service of the Order Instituting Proceedings. (Rel. 34-62687; File No. 3-14001) In the Matter of Robert ComiskeyOn Aug. 11, 2010, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Notice of Hearing (Order) against Robert Comiskey. The proceedings are based on the entry of an injunction in the civil action entitled SEC v. Robert Comiskey, et al., Civil Action Number 9:10-CV-80186, in the United States District Court for the Southern District of Florida. In the Order, the Division of Enforcement (Division) alleges that from April 2007 through September 2008 Comiskey was a telemarketing sales agent who offered and sold unregistered securities of Winning Kids, Inc. while he was not registered as a broker or dealer nor associated with a registered broker or dealer. A hearing before an administrative law judge will be scheduled to determine whether the allegations in the Order are true, to provide Comiskey an opportunity to respond to these allegations, and to determine what, if any, remedial action is appropriate in the public interest. The Order directed the Administrative Law Judge to issue an initial decision within 210 days from the date of service of the Order. (Rel. 34-62689; File No.3-14002) Securities and Exchange Commission Orders Hearing on Registration Suspension or Revocation Against Six Public Companies for Failure to Make Required Periodic FilingsToday 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 six companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the six 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 or 13a-16 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. 34-62691; File No. 3-14003) In the Matter of William Carson ArnoldOn Aug. 11, 2010, 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 William Carson Arnold, a resident of Dallas, Texas. The Order finds that, on July 19, 2010, a judgment was entered against Arnold, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Giant Operating, LLC, et al., Civil Action Number 3:09-cv-01809 in the United States District Court for the Northern District of Texas. The Order further finds that the Commission's complaint in the civil action alleged that Arnold and others participated in fraudulent securities offerings, which were not registered with the Commission as required under the law, through which Giant Operating, LLC raised at least $16.6 million from at least 150 investors throughout the United States. Based on the above, the Order bars Arnold from association with any broker or dealer. Arnold consented to the issuance of the Order without admitting or denying any of the findings except as to the entry of the judgment, which he admitted. (Rel. 34-62693; File No. 3-14004) Illinois Money Manager William A. Huber Pleads Guilty to Criminal Charges in Connection With Securities FraudThe Securities and Exchange Commission announced today that on Aug. 10, 2010, former Forsyth, Illinois money manager, William A. Huber, pled guilty to one count of mail fraud, one count of money laundering and one count of engaging in prohibited monetary transactions in a case being prosecuted by the U.S. Attorney for the Central District of Illinois. Also on Aug. 10, 2010, the U.S Attorney's Office filed a criminal Information against Huber charging that he defrauded investors by operating a Ponzi-type scheme in which he used money invested by clients to make payment to other investors. The Information also charges Huber with defrauding investors by grossly inflating the amount of money he managed and the amounts of investors' returns. The Information further charges that Huber used investor funds to support his lavish lifestyle, including paying mortgage payments and remodeling expenses for residences in California and Florida and his personal life insurance premiums. Huber is scheduled for sentencing in front of U.S. District Court Judge Joe Billy McDade on Dec. 10, 2010. The Commission previously filed a civil injunctive action against Huber in the Northern District of Illinois based on similar conduct on Sept. 29, 2009. The Commission's complaint alleged that Huber, operating through his investment firm Hubadex, Inc., made Ponzi-like payments to investors by using newer investor funds to make redemption payments at inflated amounts. The complaint also alleged that Huber significantly inflated the fees that he was entitled to receive based on the outsized investment returns that he reported to investors. According to the SEC's complaint, Huber diverted over $1.9 million in investor funds into his and his wife's bank accounts and used investor funds to pay other lavish personal expenses. The SEC further alleged that on Dec. 17, 2008, one week after Bernard Madoff was arrested for perpetrating a massive Ponzi scheme, Huber sent an e-mail message to investors reassuring them that he managed his funds honestly and that his funds bore no resemblance to Madoff's scheme. According to the complaint, Huber made a series of additional misrepresentations to investors, including, overstating the amount of assets under management and inflating investor returns. Huber also lied to SEC staff members during their investigation of his activities, reporting false account balances and claiming he had made hedge fund investments that did not exist. On Sept. 29, 2009, the Commission obtained an order pursuant to Huber's consent, permanently enjoining him from further violations of the antifraud provisions of the federal securities laws and freezing his assets. On Oct. 13, 2009, U.S. District Court Judge Ruben Castillo appointed Kevin B. Duff of Rachlis, Durham, Duff & Adler, LLC as the receiver over Huber and his company, Hubadex, Inc. On Oct. 20, 2009, the Commission instituted settled administrative proceedings against Huber in which he was permanently barred from associating with any investment adviser. [U.S. v. William A. Huber, Case No. 10-cr-10088 (C.D. Ill.); SEC v. William A. Huber and Hubadex, Inc., 09-cv-6068 (N.D. Ill.)] (LR-21623) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangeA proposed rule change filed by NYSE Arca (SR-NYSEArca-2010-77) amending its fee schedule 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 9. (Rel. 34-62670) Proposed Rule ChangesNASDAQ OMX PHLX filed a proposed rule change (SR-Phlx-2010-108) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to a proposed price improvement system, Price Improvement XL (PIXLSM). Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62678) EDGX Exchange filed a proposed rule change (SR-EDGX-2010-09) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 relating to a revenue sharing program with Correlix, Inc. Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62682) EDGA Exchange filed a proposed rule change (SR-EDGA-2010-09) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 relating to a revenue sharing program with Correlix, Inc. Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62683) Approval of Proposed Rule ChangesThe Commission approved a proposed rule change (SR-EDGX-2010-06) filed by the EDGX Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 to impose fees for physical ports used to connect to EDGX. Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62680) The Commission approved a proposed rule change (SR-EDGA-2010-06) filed by the EDGA Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 to impose fees for physical ports used to connect to EDGA. Publication is expected in the Federal Register during the week of August 9. (Rel. 34-62681) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2010/dig081110.htm
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