SEC News Digest

COMMISSION ANNOUNCEMENTS

Commission Meetings

Closed Meeting - Thursday, January 6, 2011 - 2:00 p.m.

The subject matter of the Closed Meeting scheduled for Thursday, Jan. 6, 2011, will be: formal order of investigation; institution and settlement of injunctive actions; institution and settlement of administrative proceedings; an adjudicatory matter; and other matters relating to enforcement proceedings.

At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.

ENFORCEMENT PROCEEDINGS

In the Matter of Enrique F. Villalba

On December 29, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940, Making Findings and Imposing Remedial Sanctions (Order) against Enrique F. Villalba (Respondent). The Order finds that on Dec. 15, 2010, a judgment was entered against Respondent in SEC v. Enrique F. Villalba (Civil Action No. 5:10-cv-00649) (N.D. Ohio), permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

The Order further finds that the Commission's complaint in SEC v. Enrique F. Villalba alleged that Respondent, through his former investment advisory business, Money Market Alternative, L.P., attracted over $39 million in client funds and misused and misappropriated these funds. The complaint further alleged that Respondent falsely stated to investors that his investment strategy was conservative, relatively risk free, and would preserve his clients' principal capital while still earning them returns of 8% to 12% annually. The complaint also alleged that Respondent prepared and provided his clients false quarterly account statements, which always showed his clients' accounts had increased in value. In reality, Respondent suffered catastrophic losses and otherwise engaged in a variety of conduct which operated as a fraud and deceit on his clients.

Based on the above, the Order bars Respondent from association with any investment adviser. Respondent consented to the issuance of the Order without admitting or denying any of the findings except as to the entry of the order of permanent injunction. (Rel. IA-3130; File No. 3-14173)

In the Matter of Ralph W. Thompson, Jr.

On December 30, an Administrative Law Judge issued an Order Making Findings and Imposing Sanctions by Default as to Ralph W. Thompson, Jr. (Thompson), and, pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 (Exchange Act), barred Thompson from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, or from participating in an offering of penny stock in Ralph W. Thompson, Jr., Administrative Proceeding No. 3-14116 (Default Order). Thompson did not Answer the allegations in the Order Instituting Proceedings.

The Default Order finds that on Oct. 20, 2010, an Order Imposing Injunctive Relief was entered by consent against Thompson, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Exchange Act, and Exchange Act Rule 10b-5. See SEC v. Novus Techs., LLC, No. 2:07-cv-00235 (D. Utah). (Rel. 34-63622; File No. 3-14116)

INVESTMENT COMPANY ACT RELEASES

American United Life Insurance Company, et al.

An order has been issued on an application filed by American United Life Insurance Company, et al., pursuant to Section 26 (c) of the Investment Company Act approving the substitution of securities issued by the Vanguard Variable Insurance Fund Small Company Growth Portfolio (cusip-921925889) for securities issued by the Vanguard Explorer Fund (cusip-921926101), two funds of the same fund family but unaffiliated with Applicant. (Rel. IC-29545 - December 29)

SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change filed by the Fixed Income Clearing Corporation (SR-FICC-2010-10) to amend FICC's fee structure has become effective pursuant to Section 19(b)(3) (A) (ii) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of January 3. (Rel. 34-63612)

A proposed rule change filed by NYSE Amex making permanent NYSE Amex Equities Rule 123C(9)(a)(1) and amending Rule 123C(9)(a)(1)(iii) (SR-NYSEAmex-2010-121) 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 January 3. (Rel. 34-63613)

A proposed rule change filed by New York Stock Exchange making permanent NYSE Rule 123C(9)(a)(1) and amending Rule 123C(9)(a)(1)(iii) (SR-NYSE-2010-84) 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 January 3. (Rel. 34-63614)

The Commission issued notice of filing and immediate effectiveness of proposed rule change (SR-NYSEAmex-2010-123) filed by NYSE Amex under Rule 19b-4 of the Securities Exchange Act of 1934 extending the operation of its Supplemental Liquidity Providers Pilot until the earlier of the Securities and Exchange Commission approval to make such Pilot permanent or August 1, 2011. Publication is expected in the Federal Register during the week of January 3. (Rel. 34-63615)

The Commission issued notice of filing and immediate effectiveness of proposed rule change (SR-NYSE-2010-86) filed by New York Stock Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 extending the operation of its Supplemental Liquidity Providers Pilot until the earlier of the Securities and Exchange Commission approval to make such Pilot permanent or August 1, 2011. Publication is expected in the Federal Register during the week of January 3. (Rel. 34-63616)

A proposed rule change filed by NASDAQ OMX BX to modify fees for the NASDAQ OMX BX Equities System (SR-BX-2010-092) 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 January 3. (Rel. 34-63617)

The Commission issued notice of filing and immediate effectiveness of proposed rule change (SR-NYSE-2010-85) filed by New York Stock Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 extending the operation of its New Market Model Pilot until the earlier of Securities and Exchange Commission approval to make such Pilot permanent or August 1, 2011. Publication is expected in the Federal Register during the week of January 3. (Rel. 34-63618)

A proposed rule change as modified by Amendment No. 1 thereto filed by NASDAQ OMX PHLX (SR-Phlx-2010-181) relating to Active SQF Port Fee 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 January 3. (Rel. 34-63619)

The Commission issued notice of filing and immediate effectiveness of proposed rule change (SR-NYSEAmex-2010-122) filed by NYSE Amex under Rule 19b-4 of the Securities Exchange Act of 1934 extending the operation of its New Market Model Pilot, until the earlier of Securities and Exchange Commission approval to make such Pilot permanent or August 1, 2011. Publication is expected in the Federal Register during the week of January 3. (Rel. 34-63620)

Approval of Proposed Rule Change

The Commission approved a proposed rule change filed by the Municipal Securities Rulemaking Board (SR-MSRB-2010-10) under Section 19(b)(2) of the Securities Exchange Act of 1934, consisting of amendments to Rule A-13 to increase transaction assessments for certain municipal securities transactions reported to the Board and to institute a new technology fee on reported sales transactions. Publication is expected in the Federal Register during the week of January 3. (Rel. 34-63621)

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http://www.sec.gov/news/digest/2010/dig123010.htm