SEC News Digest

COMMISSION ANNOUNCEMENTS

J.W. Mike Starr Named Deputy Chief Accountant for Policy Support and Market Monitoring In Office of Chief Accountant

The Securities and Exchange Commission today announced the appointment of J.W. Mike Starr as Deputy Chief Accountant for Policy Support and Market Monitoring in the agency's Office of the Chief Accountant.

In this role, Mr. Starr will serve as the Chief Accountant's liaison on projects and activities to improve the quality of accounting and auditing policy decisions and to identify and address potential financial reporting weaknesses and risks. Mr. Starr also will advise the Chief Accountant and the Office on highly complex topics.

"Mike has a depth and breadth of experience and proven leadership abilities that uniquely position him to immediately contribute to the work of the Office and the Commission," said SEC Chief Accountant Jim Kroeker. "His background, judgment and understanding of the important role financial reporting plays in the functioning of our capital markets serve as a wonderful addition to our leadership team. I am thrilled that he is willing to serve in this important and challenging role."

Mr. Starr said, "I am honored that Jim Kroeker has asked me to work with staff of the Office of the Chief Accountant and other divisions and offices in the SEC to identify issues or risks related to financial reporting and proactively recommend improvements to address them. I look forward to engaging with investors, business, and the accounting profession and collaborating closely with national regulators and standards setters around the world to understand what they are experiencing in the global marketplace. Close collaboration and cooperation with national regulators and standards setters is especially critical to accomplishing the SEC's mandate to protect investors."

Mr. Starr, 63, will start at the SEC next month. He previously served as the Chief Operating Officer for Grant Thornton International, where he played a key role in implementing the global strategy and oversaw public policy and other critical functions. He was previously a member of the senior leadership of Grant Thornton LLP with responsibility for the assurance and advisory practices and professional standards among other significant practice areas.

Active in professional and related activities, Mr. Starr has been a member of:

• Several AICPA committees and chair of the Special Committee on Enhanced Business Reporting and the Assurance Services Executive Committee.
• The Global Public Policy Committee and chair of its Regulatory Working Group.
• The Nasdaq Hearing and Review Listing Council, the Illinois State Board of CPA's, and the XBRL US board.

Mr. Starr is a graduate of Oklahoma State University. (Press Rel. 2010-168)

ENFORCEMENT PROCEEDINGS

Securities and Exchange Commission Orders Hearing on Registration Revocation Against Seven Public Companies for Failure to Make Required Periodic Filings

On September 14, 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 seven companies for failure to make required periodic filings with the Commission:

• Anything2ship, Inc.
• Aquaculture Resources Management, Inc.
• Arcadia Investments, Inc.
• Armitec, Inc. (AMTI)
• Arrow Capital Group, Inc.
• August Financial Holding Co., Inc. (AFHI)
• AW Computer Systems, Inc.

In this Order, the Division of Enforcement (Division) alleges that the seven 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. 34-62903; File No. 3-14045)

Securities and Exchange Commission Orders Hearing on Registration Revocation Against Seven Public Companies for Failure to Make Required Periodic Filings

On September 14, 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 seven companies for failure to make required periodic filings with the Commission:

• Electric Mail Co., Inc. (n/k/a Lero Gold Corp.)
• Electronic Publishing Technology Corp.
• Elkhorn Gold Mining Corp.
• Ememberdirect, Inc.
• Emerald Homes, Ltd.
• Encore Wireless, Inc. (ENCW)
• Entreport Corp. (EPCN)

In this Order, the Division of Enforcement (Division) alleges that the seven 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. 34-62904; File No. 3-14046)

Securities And Exchange Commission Orders Hearing on Registration Revocation Against Seven Public Companies for Failure to Make Required Periodic Filings

On September 14, 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 seven companies for failure to make required periodic filings with the Commission:

• Speed of Thought Trading Corp. (f/k/a Emperor Penguin, Inc.)
• Sports/Entertainment Group, Inc.
• Standard Automotive Corp. (SAUC)
• Starmet Corp. (STMT)
• Stearman Enterprises, Inc.
• Streamline.com, Inc. (SLNE)
• Supradur Companies, Inc.

In this Order, the Division of Enforcement (Division) alleges that the seven 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. 34-62905; File No. 3-14047)

Commission Settles Claims Against Registered Broker-Dealer, its Unregistered Affiliate and Two Individuals in Fraudulent Scheme to Pay Off Fictitious Bonds with Tens of Millions in Unauthorized Trading

On August 26, Federal District Judge Paul Gardephe of the United States District Court for the Southern District of New York entered final judgments approving settlements between the Commission and the defendants in the pending case against FTC Capital Markets, Inc. (FTC), FTC Emerging Markets (Emerging Markets), Guillermo David Clamens, and Lina Lopez. The judgments against Clamens, FTC and Emerging Markets order those defendants to pay over $20 million in disgorgement and penalties but provide for full satisfaction of their monetary obligations by defendants' release of their assets frozen at the start of the case and any other assets in the United States. The final judgment against Lopez holds her liable for a civil penalty of $130,000 but does not order her to pay the penalty in light of her conviction in a separate criminal proceeding, United States v. Nazly Cucunuba Lopez a/k/a Lina Lopez, 09 Cr. 985 (RPP)(S.D.N.Y.), and her sworn representations of financial condition. The final judgments, to which the defendants consented without admitting or denying allegations in the Commission's complaint, also permanently enjoin all the defendants from future violations of the relevant provisions of the federal securities laws. Separately, Clamens and Lopez both agreed to settle related administrative proceedings by the Commission by consenting to be barred from association with any broker or dealer.

The Commission filed the action on May 19, 2009, charging Clamens, FTC, a registered broker-dealer controlled by Clamens, and Lopez, an FTC employee, with a fraudulent scheme to engage in tens of millions of dollars of unauthorized securities trading through the accounts of two FTC customers. According to the Commission's complaint, Clamens and Lopez defrauded the two FTC customers in part to conceal their prior fraudulent sale of $50 million in non-existent notes to a Venezuelan bank through defendant Emerging Markets, another Clamens-controlled entity. When the fictitious notes held by the Venezuelan bank purportedly came due in August 2008, Clamens allegedly misappropriated $50 million from the two FTC customers to fund the redemption. In addition, the Complaint alleged that Emerging Markets illegally acted as an unregistered broker-dealer. As a result of the alleged misconduct, the Complaint charged that defendants FTC, Emerging Markets, Clamens and Lopez violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder; defendant FTC violated Section 15(c) of the Exchange Act; defendant Emerging Markets violated Section 15(a) of the Exchange Act; and defendants Clamens and Lopez aided and abetted FTC's violations of Exchange Act Section 15(c) and Emerging Markets' violations of Exchange Act Section 15(a). [SEC v. FTC Capital Markets, Inc., FTC Emerging Markets, Inc. also d/b/a FTC Group, Guillermo David Clamens and Lina Lopez a/k/a Nazly Cucunuba Lopez, 09 Civ. 4755 (PGG) (S.D.N.Y.)] (LR-21646)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Change

The Options Clearing Corporation filed a proposed rule change (SR-OCC-2010-15) under Section 19(b)(1) of the Exchange Act, which became effective upon filing, to amend Interpretation .01 to Article VI, Section 11A of OCC's By-Laws to allow OCC's Securities Committee, under certain conditions, to cease adjusting for recurring cash dividends previously deemed to be non-ordinary dividends. Publication is expected in the Federal Register during the week of September 13. (Rel. 34-62879)

Approval of Proposed Rule Change

The Commission has approved a proposed rule change (SR-FINRA-2010-032) submitted by the Financial Industry Regulatory Authority pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to clearly erroneous transactions. Publication is expected in the Federal Register during the week of September 13. (Rel. 34-62885)

Proposed Rule Change

NASDAQ OMX PHLX filed a proposed rule change (SR-Phlx-2010-119) relating to Limitation of Exchange Liability pursuant to Rule 19b-4 under the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 13. (Rel. 34-62892)

JOINT INDUSTRY PLAN RELEASES

Notice of Filing and Temporary Effectiveness of Amendment to Plan Establishing Procedures Under Rule 605 of Regulation NMS

The Commission has issued a release giving notice and granting temporary effectiveness to an amendment filed by the BATS Y-Exchange, Inc. to join the national market system plan (File No. 4-518) that establishes procedures for market centers to follow in making reports available under Rule 605 of Regulation NMS. Publication is expected in the Federal Register during the week of September 13. (Rel. 34-62896)

SECURITIES ACT REGISTRATIONS

• Latest Securities Act registrations (TXT)

RECENT 8K FILINGS

• Latest 8-K filings (TXT)

http://www.sec.gov/news/digest/2010/dig091410.htm