SEC News Digest

COMMISSION ANNOUNCEMENTS

Securities and Exchange Commission Suspends Trading in Four Crystal Funding, Inc. for Failure to Make Required Periodic Filings

The United States Securities and Exchange Commission announced the temporary suspension of trading in the securities of Four Crystal Funding, Inc. (Four Crystal), commencing at 9:30 a.m. EDT on Aug. 16, 2010 and terminating at 11:59 p.m. EDT on Aug. 27, 2010. The Commission temporarily suspended trading in the securities of Four Crystal due to a lack of current and accurate information about the company because it failed to file certain periodic reports with the Commission. The order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).

The Commission cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by this company.

Brokers and dealers should be alerted to the fact that, pursuant to Exchange Act Rule 15c2-11, at the termination of the trading suspension, no quotation may be entered relating to the securities of Four Crystal unless and until the broker or dealer has strictly complied all of the provisions of the rule. If any broker or dealer is uncertain as to what is required by the rule, it should refrain from entering quotations relating to the securities of Four Crystal until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. Any broker or dealer with questions regarding the rule should contact the staff of the Securities and Exchange Commission in Washington, DC at (202) 551-5720. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

If any broker, dealer or other person has any information which may relate to this matter, John T. Dugan of the Boston Regional Office of the Securities and Exchange Commission should be telephoned at (617) 573-8936. (34-62722)

Deputy Chief Economist Stewart Mayhew to Leave SEC After Eight Years of Service

The Securities and Exchange Commission announced on Aug. 13, 2010, that Deputy Chief Economist Stewart Mayhew is leaving the agency after eight years of public service.

Dr. Mayhew came to the SEC as a Visiting Academic Scholar in 2002.  He became an Assistant Chief Economist in 2004 and was appointed Deputy Chief Economist in 2008.  He worked on a wide variety of policy, rulemaking, and litigation support matters including Regulation NMS and the Option Penny Pilot project.

Stewart has a deep understanding of market microstructure, options, exchange-traded funds, clearance and settlement, and other complex matters,” said Henry Hu, Director of the Division of Risk, Strategy, and Financial Innovation. “The Commission has truly benefitted in many ways not only from Stewart’s expertise but also from his energy and creativity.

Dr. Mayhew said, “I am very grateful to have had the opportunity to help incorporate rigorous economic analysis into the Commission’s rulemaking and enforcement activities. It has been a privilege and an honor to serve the nation’s investors and work alongside so many highly talented professionals who are deeply committed to investor protection and strengthening the efficiency and integrity of our capital markets.

Dr. Mayhew, 43, will leave the SEC to work in the Washington D.C. office of Cornerstone Research, an economic and financial consulting firm.

Prior to joining the SEC staff, Dr. Mayhew served on the faculty of the Terry College of Business at the University of Georgia and the Krannert School of Management at Purdue University. He has published numerous academic articles in such publications as the Journal of Finance, the Journal of Financial and Quantitative Analysis, and the Journal of Futures Markets. Dr. Mayhew earned his Ph.D. in finance from the University of California at Berkeley in 1996. (Press Rel. 2010-150)

ENFORCEMENT PROCEEDINGS

In the Matter of Apogee Technology, Inc.

The Commission issued an Order on the Basis of Offer of Settlement of Apogee Technology, Inc., Implementing Settlement (Order). Administrative proceedings were previously instituted against Apogee Technology, Inc. (Apogee) on April 16, 2010, in an Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, in which the Commission alleged that Apogee filed a materially deficient Form 10-K for the 2008 fiscal year and materially deficient Forms 10-Q for the three quarters of 2009, and failed to file a Form 10-K for the 2009 fiscal year in violation of Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.

Based on the above, the Order implements a settlement reached between Apogee and the Commission. According to the terms, Apogee must file periodic reports that are past due or will become due by Aug. 16, 2010. If Apogee submits these filings by August 16, 2010, but the filings are deficient, Apogee has until Aug. 26, 2010, to remedy any deficiencies. The administrative proceedings instituted on April 16, 2010 against Apogee will be terminated if Apogee submits filings in accordance with the terms of the settlement. However, if Apogee fails to submit filings by the specified dates, Apogee’s securities registration will be revoked. (Rel. 34-62721; File No. 3-13862)

Commission Orders Hearing on Registration Suspension or Revocation Against Four Crystal Funding, Inc. for Failure to Make Required Periodic Filings

In conjunction with today’s trading suspension, the Commission announced the issuance of an Order Instituting Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Exchange Act (Order) against Four Crystal Funding, Inc. (Respondent). The Division of Enforcement alleges that the Respondent is delinquent in its periodic filings with the Commission for failing to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder, having not filed any periodic reports since its predecessor Pro Tech Communications, Inc., filed a Form 10-Q for the period ended June 30, 2006.

A hearing will be held by an Administrative Law Judge to determine whether the allegations contained in the Order are true, to afford the Respondent an opportunity to establish any defenses to such allegations, and to determine whether it is necessary or appropriate for the protection of investors to suspend for a period not exceeding twelve months, or to revoke the registration of each class of securities of the Respondent registered pursuant to Section 12 of the Securities Exchange Act of 1934. The Order requires the Administrative Law Judge to issue an initial decision no later than 120 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice. (Rel. 34-62723; File No. 3-14008)

Final Judgments of Permanent Injunction and Other Relief Entered Against Defendants Edward M. Denigris and William Dyer

The Commission announced that on Aug. 11, 2010, the Honorable James I. Cohn, United States District Court Judge for the Southern District of Florida, entered final judgments of permanent injunction and other relief against Defendants Edward M. Denigris and William Dyer. The final judgment against Denigris enjoins him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (Exchange Act) and Section 15(a) of the Exchange Act. In addition to injunctive relief, Denigris is liable for disgorgement of $806,349, plus prejudgment interest of $71,117.85 and a civil penalty of $130,000 and is barred from participating in the offering of any penny stock.

The final judgment against Dyer enjoins him from violating Section 15(a) of the Exchange Act. Dyer is liable for disgorgement of $10,000, plus prejudgment interest of $1,192 and a civil penalty of $10,000 and is barred from participating in the offering of any penny stock. Denigris and Dyer consented to the entry of the final judgments without admitting or denying any of the allegations in the complaint.

The Commission commenced this action on Oct. 28, 2009, by filing an emergency action against the Defendants alleging they defrauded investors by offering and selling Amante Corporation common stock in unregistered transactions through a boiler room operation. [SEC v. Amante Corporation, Commonwealth Capital Management, Inc., Edward M. Denigris, and William D. Dyer, Civil Action No. 09-CIV-61716-Cohn/Seltzer (S.D. Fla.)] (LR-21626)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by EDGX Exchange (SR-EDGX-2010-11) to amend EDGX Rule 3.13 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 16. (Rel. 34-62695)

A proposed rule change (SR-CBOE-2010-073) filed by the Chicago Board Options Exchange to amend its fees schedule and circular regarding trading permit holder application and other related fees 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 16. (Rel. 34-62704)

A proposed rule change filed by NYSE Arca (SR-NYSEArca-2010-76) relating to amendments to NYSE Arca Rule 6.24 Exercise of Options Contracts 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 16. (Rel. 34-62706)

A proposed rule change filed by NYSE Amex (SR-NYSEAmex-2010-79) amending Rule 980-Exercise of Options Contracts 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 16. (Rel. 34-62707)

A proposed rule change filed by NASDAQ OMX BX (SR-BX-2010-055) to extend the cut-off time to submit Contrary Exercise Advices and make some clerical and conforming changes to Exchange rules 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 16. (Rel. 34-62708)

A proposed rule change filed by The NASDAQ Stock Market (SR-NASDAQ-2010-097) to amend Exchange rules related to the cut-off time for Contrary Exercise Advice submissions 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 16. (Rel. 34-62709)

A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2010-109) to amend Exchange rules related to the cut-off time for Contrary Exercise Advice submissions 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 16. (Rel. 34-62710)

A proposed rule change filed by the Financial Industry Regulatory Authority (SR-FINRA-2010-041) relating to amendments to FINRA Rule 2360 to extend the time to submit a Contrary Exercise Advice and the time for a final exercise decision in the event of a modified close of trading 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 16. (Rel. 34-62711)

A proposed rule change filed by Chicago Board Options Exchange (SR-CBOE-2010-074) relating to amendments to CBOE Rule 11.1 to extend the cut-off time to submit contrary exercise advices 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 16. (Rel. 34-62712)

A proposed rule change filed by BATS Exchange (SR-BATS-2010-021) relating to amendments to BATS Rule 23.1, entitled “Exercise of Options Contracts,” 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 16. (Rel. 34-62713)

A proposed rule change filed by NASDAQ OMX BX (SR-BX-2010-056) relating to establishing strike price intervals for options on Trust Issued Receipts, including Holding Company Depositary Receipts, 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 16. (Rel. 34-62719)

Accelerated Approval of Proposed Rule Change

The Commission granted accelerated approval to a proposed rule change, as modified by Amendment No. 1 thereto, by the Municipal Securities Rulemaking Board (SR-MSRB-2009-17) pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934, consisting of (i) amendments to Rule G-8 (Books and Records to be Made by Brokers, Dealers and Municipal Securities Dealers), Rule G-9 (Preservation of Records), and Rule G-11 (New Issue Syndicate Practices); (ii) a Proposed Interpretation of Rule G-17 (Conduct of Municipal Securities Activities); and (iii) the deletion of a previous Rule G-17 Interpretive Notice. Publication is expected in the Federal Register during the week of August 16. (Rel. 34-62715)

Proposed Rule Change

International Securities Exchange filed a proposed rule change (SR-ISE-2010-81) pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to trading options on a reduced value of the DAX Index, including long-term options. Publication is expected in the Federal Register during the week of August 16. (Rel. 34-62703)

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