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ENFORCEMENT PROCEEDINGSFinal Judgments Entered Against Defendants Mercer Capital, Inc., Mercer Capital Management, Inc., Tri-State Energy Group, LLC, Tri-State Energy Group I, LTD., Tri-State Energey Group II, LTD., and Robert L. Flickinger IIThe Securities and Exchange Commission announced that on June 29, 2010, and December 3, 2008, the United States District Court for the Southern District of Florida entered Final Judgments against defendants Mercer Capital, Inc., Mercer Capital Management, Inc., Tri-State Energy Group, LLC, Tri-State Energy Group I, LTD., Tri-State Energy Group II, LTD. (collectively, the Defendant Entities), and Robert L. Flickinger II, respectively. The Final Judgments, entered by consent, enjoin the Defendant Entities and Flickinger from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The Final Judgment against Flickinger permanently bars him from serving as an officer or director of a public company, and from participating in any future penny stock offerings. It also orders him to pay disgorgement in the amount of $543,622.88, together with prejudgment interest of $65,128.41 and imposes a civil penalty in the amount of $130,000. The Court also dismissed the Commission's claims for disgorgement and civil penalties against the Defendant Entities, which are defunct. On November 21, 2006 the Commission filed an emergency action to halt an ongoing offering fraud involving the sale of oil and gas limited partnerships interests and investments in a private placement of a former commodities broker-dealer, Mercer Capital, Inc., and its principal Robert Flickinger II and sales agents he directed. The complaint alleged that Flickinger and the sales agents raised at least $2 million from investors through three securities offerings. [SEC v. Mercer Capital, Inc, et al., Case No. 06-81080-Middlebrooks/Johnson (S.D. Fla.)] (LR-21771) Judgments of Permanent Injunction Entered Against Defendants Helvetia Pharmaceuticals, Inc., Richard Anders, Nicholas Bachynsky, Arthur Scheinert, and Laurence DeanThe Commission announced that the United States District Court for the Southern District of Florida entered the following judgments: 1) on May 3, 2010, a judgment against defendant Arthur Scheinert; 2) on October 4, 2010, final judgments against defendants Nicholas Bachynsky and Richard Anders; and 3) on October 14, 2010, final judgments against defendants Laurence Dean and Helvetia Pharmaceuticals, Inc. The Judgments against Dean and Helvetia were entered subsequent to the Court's favorable rulings on the Commission's motions for summary judgment and default judgment against Dean and Helvetia, respectively, while, the Judgments against Bachynsky, Anders and Scheinert were entered by consent. The Judgments against Helvetia, Bachynsky, Anders and Scheinert enjoin these defendants from future from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 (Securities Act), and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (Exchange Act). Scheinert's Judgment also prohibits him from violating Section 15(a) of the Exchange Act, while Anders and Bachynsky's Judgments bar them from participating in any penny stock offering. The Judgment against Dean enjoins him from violations of Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5 of Exchange Act. The Court also dismissed the Commission's claims for disgorgement and civil penalties against all defendants. The Commission began this action by filing its complaint on June 21, 2004. The complaint alleged the defendants raised more than $3 million in a fraudulent, unregistered securities offering by making statements to investors that the money raised would be used to develop and operate cancer treatment clinics. [SEC v. Helvetia Pharmaceuticals, Inc., et al. Civil Action No. 04-60804-CIV-JORDAN (S.D. Fla.)] (LR-21772) Final Judgment Entered Against Defendants William J. Hickey and Sean A. OsborneThe Commission announced that on October 27, 2010, the United States District Court for the Southern District of Florida entered a Final Judgment against Defendants William J. Hickey and Sean A. Osborne. Following an evidentiary hearing on the Commission's motion to set disgorgement and civil penalty against Hickey and Osborne, the Court entered the Final Judgment ordering them to pay disgorgement of $224,290 and $373,819, with prejudgment interest of $5,079.62 and $8,466.07, respectively. In addition, the Court ordered Hickey and Osborne to pay civil penalties in the amount of $15,000 each. Previously the Court entered Judgments against Hickey and Osborne, by consent, which enjoined them from violations of Sections 5(a), 5(c) and 17(a)(2) and (3) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. [SEC v. Superior Opportunities, Inc., et al., Civil Action No. 04-80021-CIV-HURLEY/HOPKINS (S.D. Fla.)] (LR-21773) Court Enters Judgments of Permanent Injunction and Other Relief Against Defendants Barriermed, Inc. and Barriermed Glove Co. and Final Judgment Against Victor J. RagucciThe Commission announced that on October 14 and November 2, 2010, the United States District Court for the Middle District of Florida entered a Final Judgment of Permanent Injunction and Other Relief against Defendants BarrierMed, Inc. and BarrierMed Glove Co., and a Final Judgment against Defendant Victor Ragucci, respectively. The Final Judgment against BarrierMed, Inc. and BarrierMed Glove, entered by default, enjoins the companies from violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The Court also dismissed, with prejudice, the Commission's claims for disgorgement and civil penalties against BarrierMed, Inc. and BarrierMed Glove, after the Commission indicated both companies were defunct. The Final Judgment against Ragucci, entered by consent, orders him to pay disgorgement of $430,000, representing profits he gained as a result of the conduct alleged in the Commission's Complaint, together with prejudgment interest of $31,791.62. In addition, the Final Judgment orders Ragucci to pay a civil penalty in the amount of $130,000. Previously, the Court entered a Judgment of Permanent Injunction and Other Relief, by consent, against Ragucci, prohibiting him from violating the registration and anti-fraud provisions of the federal securities laws. The Commission commenced this action by filing its complaint on January 15, 2009, against Ragucci BarrierMed, Inc., and BarrierMed Glove. The complaint alleged that Ragucci and the companies fraudulently raised over $11 million from hundreds of investors nationwide by offering and selling unregistered securities through a series of private offerings. [SEC v. BarrierMed, Inc., BarrierMed Glove Co. and Victor J. Ragucci, Case No. 6:09-CV-102-Orl-28KRS (M.D. Fla.)] (LR-21774) Judgment of Permanent Injunction and Other Relief Entered Against Defendant Arthur NadelThe Commission announced that on August 18, 2010, the United States District Court for the Middle District of Florida entered a Judgment of Permanent Injunction and Other Relief against Defendant Arthur Nadel. The Judgment, entered by consent, enjoins Nadel from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The Court also ordered Nadel to pay disgorgement and a civil penalty in amounts to be determined by the Court upon motion by the Commission. The Commission began this action by filing its complaint on January 21, 2010, charging Nadel with fraud in connection with six hedge funds for which he acted as the principal investment advisor. According to the complaint, Nadel provided false and misleading information for dissemination to investors about the funds' historical returns and falsely overstated the value of investments in the funds by approximately $300 million. [SEC v. Arthur Nadel, et al., Civil Action No. 8:09-cv-87-T-26TBM (M.D. Fla.)] (LR-21775) Court Enters Permanent Injunctions Against Dennis Michael Nouri, Reeza Eric Nouri, James Doolan, Alain Lustig, and Anthony MartinThe Commission announced that between December 1, 2010 and December 8, 2010, the Honorable P. Kevin Castel, United States District Judge for the Southern District of New York entered Final Judgments by consent against defendants Dennis Michael Nouri, Reeza Eric Nouri, James Doolan, Alain Lustig, and Anthony Martin (collectively, Defendants). The Final Judgments enjoins the Defendants 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. The Final Judgment against defendant Dennis Michael Nouri also prohibits him from serving as an officer or director of any public company. The Defendants consented to the entry of the Final Judgments without admitting or denying any of the allegations in the Commission's complaint. [SEC v. SMART ONLINE, INC., ET AL., Civil Action No. 07-CV-7960 (PKC) (S.D.N.Y.)] (LR-21776) William A. Huber Sentenced to 20 Years in Prison and Ordered to Pay $23.6 Million in Restitution for Securities FraudThe Securities and Exchange Commission announced that on December 10, 2010, U.S. District Court Judge Joe Billy McDade sentenced former Forsyth, Illinois money manager, William A. Huber, to serve 20 years in federal prison for operating a Ponzi-type scheme for more than a decade. In addition, Judge McDade ordered Huber to pay more than $23.6 million in restitution to the victims of his fraud. Huber was immediately taken into custody at the conclusion of the sentencing hearing. On August 10, 2010, the U.S. Attorney's Office for the Central District of Illinois filed a criminal Information against Huber charging him for defrauding investors in a Ponzi-type scheme and grossly inflating the amount of money he managed and the amounts of investors' returns. That day, Huber pled guilty to one count of mail fraud, one count of money laundering and one count of engaging in prohibited monetary transactions. The Commission previously filed its own civil injunctive action against Huber in the Northern District of Illinois based on similar conduct. 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 and 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 September 29, 2009, the Court entered an order pursuant to Huber's consent, permanently enjoining him from further violations of the antifraud provisions of the federal securities laws, freezing his assets and ordering him to pay disgorgement and civil penalties in amounts to be determined in a separate hearing. On October 13, 2009, the Honorable Ruben Castillo appointed Kevin B. Duff of Rachlis, Durham, Duff & Adler, LLC as the receiver over Huber and Hubadex, Inc. See also: Litigation Release Nos. 21623 (August 11, 2010) and 21230 (September 30, 2009). [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-21777) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change filed by the EDGX Exchange (SR-EDGX-2010-20) relating to amendments to the EDGX Exchange, Inc. 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 December 13. (34-63465) A proposed rule change filed by the EDGA Exchange, Inc. (SR-EDGA-2010-21) relating to amendments to the EDGA Exchange, Inc. 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 December 13. (34-63466) A proposed rule change filed by the EDGA Exchange (SR-EDGA-2010-20) to amend its Fee Schedule to add two new routing options 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 December 13. (34-63467) A proposed rule change filed by the EDGX Exchange (SR-EDGX-2010-19) to amend its Fee Schedule to add two new routing options 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 December 13. (34-63468) A proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-2010-108) relating to CBOE's marketing fee program 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 December 13. (34-63470) A proposed rule change (SR-CBOE-2010-103) 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 December 13. (34-63472) A proposed rule change filed by New York Stock Exchange amending NYSE Rule 128, which governs clearly erroneous executions, to extend the effective date of the pilot (SR-NYSE-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 December 13. (34-63479) A proposed rule change filed by NYSE Amex amending NYSE Amex Equities Rule 128, which governs clearly erroneous executions, to extend the effective date of the pilot (SR-NYSEAmex-2010-116) 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 December 13. (34-63480) A proposed rule change filed by International Securities Exchange to amend ISE Rule 2128 to extend the pilot program (SR-ISE-2010-118) 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 December 13. (34-63481) A proposed rule change filed by NYSE Arca, Inc. amending NYSE Arca Rule 7.10, which governs clearly erroneous executions, to extend the effective date of the pilot (SR-NYSEArca-2010-113) 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 December 13. (34-63482) A proposed rule change filed by Financial Industry Regulatory Authority to extend the pilot period of amendments to FINRA Rule 11892 governing clearly erroneous transactions (SR-FINRA-2010-065) 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 December 13. (34-63483) A proposed rule change filed by National Stock Exchange to amend its rules to extend the pilot program regarding clearly erroneous executions (SR-NSX-2010-16) 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 December 13. (34-63484) A proposed rule change filed by Chicago Board Options Exchange related to the extension of the clearly erroneous policy pilot program (SR-CBOE-2010-113) 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 December 13. (34-63485) A proposed rule change filed by BATS-Y Exchange to extend the pilot program related to clearly erroneous reviews (SR-BYX-2010-006) 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 December 13. (34-63486) A proposed rule change filed by Chicago Stock Exchange to extend the pilot program related to clearly erroneous transactions (SR-CHX-2010-23) 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 December 13. (34-63487) A proposed rule change filed by BATS Exchange to extend the pilot program related to clearly erroneous reviews (SR-BATS-2010-036) 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 December 13. (34-63488) A proposed rule change filed by The NASDAQ Stock Market to extend the pilot period of amendments to the clearly erroneous transactions rule (SR-NASDAQ-2010-160) 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 December 13. (34-63489) A proposed rule change filed by NASDAQ OMX BX to extend the pilot period of amendments to the clearly erroneous transactions rule (SR-BX-2010-086) 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 December 13. (34-63490) A proposed rule change filed by NASDAQ OMX PHLX to extend the pilot period of amendments to the clearly erroneous transactions rule (SR-PHLX-2010-173) 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 December 13. (34-63491) A proposed rule change filed by NASDAQ OMX PHLX relating to changing the starting time for NASDAQ OMX PSX (SR-Phlx-2010-172) 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 December 13. (34-63492) A proposed rule change filed by the International Securities Exchange LLC (SR-ISE-2010-112) relating to fees and rebates for adding and removing liquidity has become immediately 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 December 13. (34-63494) A proposed rule change filed by International Securities Exchange to amend ISE Rule 2102 to extend the pilot program (SR-ISE-2010-117) 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 December 13. (34-63506) A proposed rule change filed by EDGX Exchange to amend EDGX Rule 11.14 to extend the operation of a pilot pursuant to the rule until April 11, 2011 (SR-EDGX-2010-22) 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 December 13. (34-63507) A proposed rule change filed by National Stock Exchange to amend its rules to extend pilot program regarding trading pauses in individual securities due to extraordinary market volatility (SR-NSX-2010-17) 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 December 13. (34-63512) A proposed rule change filed by BATS Y-Exchange to extend the pilot program related to trading pauses due to extraordinary market volatility (SR-BYX-2010-007) 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 December 13. (34-63513) A proposed rule change filed by EDGA Exchange, Inc. to amend EDGA Rule 11.14 to extend the operation of a pilot pursuant to the rule until April 11, 2011 (SR-EDGA-2010-23) 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 December 13. (34-63514) A proposed rule change filed by EDGX Exchange to amend EDGX Rule 11.13 to extend the operation of a pilot pursuant to Rule 11.13 until April 11, 2011 (SR-EDGX-2010-23) 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 December 13. (34-63515) A proposed rule change filed by EDGA Exchange to amend EDGA Rule 11.13 to extend the operation of a pilot pursuant to Rule 11.13 until April 11, 2011 (SR-EDGA-2010-24) 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 December 13. (34-63517) A proposed rule change (SR-CBOE-2010-110) filed by the Chicago Board Options Exchange relating to the Options Regulatory Fee 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 December 13. (34-63524) A proposed rule change filed by NASDAQ OMX BX to extend the pilot period of the trading pause for individual stocks contained in the Standard & Poor's 500 Index, Russell 1000 Index, and specified exchange traded products that experience a price change of 10% or more during a five-minute period (SR-BX-2010-088) 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 December 13. (34-63527) Proposed Rule ChangesThe Commission issued notice of a proposed rule change (SR-NYSEArca-2010-110) submitted by NYSE Arca pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, to list and trade shares of the Teucrium Natural Gas Fund under NYSE Arca Equities Rule 8.200. Publication is expected in the Federal Register during the week of December 13. (34-63493) The NASDAQ OMX PHLX filed a proposed rule change, as modified by Amendment No. 1, (SR-Phlx-2010-157) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 relating to complex orders. Publication is expected in the Federal Register during the week of December 13. (34-63509) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2010/dig121310.htm
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