SEC News Digest

COMMISSION ANNOUNCEMENTS

Securities and Exchange Commission Suspends Trading in Securities of Alternate Energy Holdings, Inc. Due to Lack of Accurate Information

The Commission announced the temporary suspension of trading in the securities of Alternate Energy Holdings, Inc. (AEHI), commencing at 9:30 a.m. EST, on December 14, 2010 through 11:59 p.m. EST, on December 28, 2010.

The Commission temporarily suspended trading in the securities of AEHI because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the stock sales of certain AEHI officers, the status and viability of funding to build a nuclear reactor, and executive compensation. This 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 these companies. Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to AEHI securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. 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, he should contact Michael S. Dicke or Tracy L. Davis of the San Francisco Regional Office of the Securities and Exchange Commission at (415) 705-2500. (Rel. 34-63535)

ENFORCEMENT PROCEEDINGS

In the Matter of John W. Lawton

On December 14, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act), (the Order), against John W. Lawton (Lawton). The Order is based on Lawton's permanent injunction in a related civil action in the U.S. District Court for the District of Minnesota, captioned SEC v. John W. Lawton, Paramount Partners, LP, (Paramount), and Crossroad Capital Management, LLC, (Crossroad), No. 09-CV-00368.

The Order alleges that on February 18, 2009, the Commission filed a Complaint charging Lawton, Paramount, and Crossroad with violations of 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, and Sections 206(1), 206(2) and 206(4) of the Advisers Act, and Rule 206(4)-8 thereunder.

The Commission's pleadings alleged, among other things, that Lawton defrauded Paramount investors through disseminating misleading offering material and monthly account statements. Lawton distributed a monthly fact sheet that purported to show returns each month for the existence of the Fund, along with assets under management. Those numbers were routinely misstated. Lawton also sent out monthly statements to each investor incorporating the false returns. Lawton then took management and performance fees based on the fraudulently misstated numbers. On July 13, 2009, the Court entered a judgment that, among other things, permanently enjoins Lawton from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder.

A parallel criminal proceeding was brought against Lawton on October 30, 2009. On November 24, 2009, Lawton pled guilty to one count of mail fraud in violation of Title 18 United States Code, Section 1341 and one count of making a false statement to the Securities and Exchange Commission in violation of Title 18 United States Code, Section 1001 before the United States District Court for the District of Minnesota, in United States v. John W. Lawton, No. 09-CR-00319. On October 6, 2010 Lawton was sentenced to serve 70 months in prison.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Lawton an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions are appropriate and in the public interest. The Order requires the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rel. IA-3123; File No. 3-14162)

MMR Investment Bankers, LLC (d/b/a MMR, Inc.), William G. Martin, Jr., Eugene R. Rankin, John A. Hubert, and Aaron D. Fimreite

On December 14, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934. The Order alleges that the Respondents failed to disclose compensation and other conflicts of interest to investors and failed to determine the suitability of the offered investments.

A hearing will be held by an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondents an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions are appropriate and in the public interest. The Order requires the Administrative Law Judge to issue an initial decision no later than 300 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rels. 33-9163; 34-63543; File No. 3-14163)

Former Pastor Sentenced to 54 Years in Prison for Role in Massive Investment Fraud

On December 8, 2010, Gibson County, Indiana Judge Deana Martin sentenced Vaughn A. Reeves, Sr. to 54 years in prison for his role in a massive affinity fraud investment scheme that raised more than $120 million from investors in church bonds. On October 21, 2010, a Gibson County jury convicted Reeves - a former pastor and the CEO of Alanar, Inc. - on nine felony counts of aiding, inducing, and causing securities fraud. The SEC filed a civil action against Vaughn Reeves and others in July 2005 based on related conduct.

The State of Indiana alleged that Vaughn Reeves and his sons, Christopher, Joshua, and Vaughn Reeves, Jr., violated state securities laws by misusing money raised from purchasers of church bonds sold through Alanar, Inc., an entity controlled by Vaughn Reeves and his sons. According to the State of Indiana, the Reeves' scheme involved approximately 300 separate bond issuances that raised at least $120 million from investors. The State of Indiana alleged that the Reeves' scheme was an affinity fraud in that Alanar's marketing strategy was devised to appeal to the Christian faith of potential investors. The State further alleged that the Reeves misused funds from certain bond issuances to conceal from investors the true rate of default on Alanar's bonds and that the Reeves personally received more than $6 million in ill-gotten gains. The State charged each of the Reeves with ten separate felony counts of violating the Indiana Securities Act. Christopher Reeves, Joshua Reeves, and Vaughn Reeves, Jr. are scheduled to go to trial in 2011. Additional information regarding the criminal prosecution of the Reeves can be found at: www.sullivancountyprosecutor.com/alanar-information.

In July 2005, the SEC filed a civil action against the Reeves and others alleging, among other things, that the Reeves violated the antifraud provisions of the federal securities laws by misusing investor funds and improperly diverting investor funds to themselves and entities they controlled. The SEC further alleged that the Reeves' scheme raised more than $120 million from investors in church bonds, including $50 million from investors in related bond funds. On July 26, 2005, the United States District Court for the Southern District of Indiana issued an Order of Permanent Injunction against the Reeves and various entities they controlled which, among other things, permanently enjoined the Reeves from violating the antifraud provisions of the federal securities laws, froze their assets, and appointed an independent monitor over the Reeves' entities. In December 2005, the Court appointed a receiver over the Reeves' entities. The Court subsequently approved a plan that provides for a distribution of funds to harmed investors through the Court-appointed receiver. On May 19, 2008, the Court entered final judgments against the Reeves which, among other things, required them to collectively pay more than $7.88 million in disgorgement, prejudgment interest and civil penalties. For additional information regarding the SEC's case, see LR-19314 (July 27, 2005) and LR-20629 (June 25, 2008). [SEC v. Alanar, Inc., et al., Civil Action No. 1:05-cv-01102 (S.D. Ind.) (Chief Judge David F. Hamilton)] (LR-21778)

INVESTMENT COMPANY ACT RELEASES

SSgA Funds Management, Inc., et al.

An order has been issued on an application filed by SSgA Funds Management, Inc., et al. to permit (a) series of certain open-end management investment companies to issue shares (Shares) that can be redeemed only in large aggregations (Creation Units); (b) secondary market transactions in Shares to occur at negotiated market prices; (c) certain series to pay redemption proceeds, under certain circumstances, more than seven days after the tender of Shares for redemption; (d) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of Creation Units; (e) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire Shares; and (f) certain series to perform creations and redemptions of Shares in-kind in a master-feeder structure. (Rel. IC-29524 - December 13)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by NASDAQ OMX PHLX relating to the collection of exchange fees (SR-Phlx-2010-171) 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. (Rel. 34-63495)

A proposed rule change filed by NYSE Arca amending NYSE Arca Equities Rule 7.11 to extend the effective date of the pilot (SR-NYSEArca-2010-114) 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. (Rel. 34-63496)

A proposed rule change filed by BATS Exchange to extend a pilot program related to trading pauses due to extraordinary market volatility (SR-BATS-2010-037) 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. (Rel. 34-63497)

A proposed rule change filed by Chicago Stock Exchange to extend the pilot program related to individual securities circuit breakers (SR-CHX-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. (Rel. 34-63498)

A proposed rule change filed by NASDAQ OMX BX to clarify quote management procedures (SR-BX-2010-087) 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. (Rel. 34-63499)

A proposed rule change filed by New York Stock Exchange amending NYSE Rule 80C to extend the effective date of the pilot (SR-NYSE-2010-81) 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. (Rel. 34-63500)

A proposed rule change filed by NYSE Amex amending NYSE Amex Equities Rule 80C to extend the effective date of the pilot (SR-NYSEAmex-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. (Rel. 34-63501)

A proposed rule change filed by Chicago Board Options Exchange related to the extension of the individual stock trading pause pilot program (SR-CBOE-2010-112) 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. (Rel. 34-63502)

A proposed rule change filed by Financial Industry Regulatory Authority to extend the effective date of the trading pause pilot (SR-FINRA-2010-064) 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. (Rel. 34-63503)

A proposed rule change filed by NASDAQ OMX PHLX 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-Phlx-2010-174) 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. (Rel. 34-63504)

A proposed rule change filed by The NASDAQ Stock Market 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-NASDAQ-2010-162) 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. (Rel. 34-63505)

A proposed rule change filed by the EDGA Exchange relating to amendments to the EDGA Exchange, Inc. fee schedule (SR-EDGA-2010-22) 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. (Rel. 34-63519)

A proposed rule change filed by the EDGX Exchange relating to amendments to the EDGX Exchange, Inc. fee schedule (SR-EDGX-2010-21) 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. (Rel. 34-63520)

A proposed rule change filed by The NASDAQ OMX BX to change the implementation date for direct access fees (SR-BX-2010-089) 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. (Rel. 34-63521)

A proposed rule change filed by NASDAQ OMX PHLX to change the implementation date for direct access fees (SR-Phlx-2010-175) 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. (Rel. 34-63522)

A proposed rule change filed by The NASDAQ Stock Market to change the implementation date for direct access fees (SR-NASDAQ-2010-165) 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. (Rel. 34-63523)

A proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-2010-104) relating to Professional and Voluntary Professional fees 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. (Rel. 34-63525)

A proposed rule change filed by The NASDAQ Stock Market to provide an exemption from the thirty-day written notice requirement of Rule 7018(i)(3) (SR-NASDAQ-2010-164) 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. (Rel. 34-63530)

A proposed rule change filed by the International Securities Exchange (SR-ISE-2010-109) relating to a fee waiver 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. (Rel. 34-63531)

Designation of Longer Period for Commission Action on Proposed Rule Changes

The Commission has designated a longer period for Commission action under Section 19(b)(2) of the Securities Exchange Act of 1934 on a proposed rule change (SR-NASDAQ-2010-134) filed by The NASDAQ Stock Market to adopt additional criteria for listing commodity stockpiling companies that have indicated that their business plan is to buy and hold commodities. Publication is expected in the Federal Register during the week of December 13. (Rel. 34-63508)

Proposed Rule Changes

Pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, the New York Stock Exchange filed a proposed rule change, as modified by Amendment No. 1, (SR-NYSE-2010-77) in connection with the proposal of NYSE Euronext to eliminate the requirement of an 80% supermajority vote to amend or repeal Section 3.1 of its Bylaws. Publication is expected in the Federal Register during the week of December 13. (Rel. 34-63532)

The Commission issued a notice of filing of a proposed rule change by the Municipal Securities Rulemaking Board pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, relating to Amendments to Rule A-3, on Membership on the Board (SR-MSRB-2010-17). Publication is expected in the Federal Register during the week of December 13. (Rel. 34-63533)

SECURITIES ACT REGISTRATIONS

• Latest Securities Act registrations (TXT)

RECENT 8K FILINGS

• Latest 8-K filings (TXT)

http://www.sec.gov/news/digest/2010/dig121410.htm