SEC News Digest
Issue 2011-1
January 3, 2011
ENFORCEMENT PROCEEDINGS
SEC Obtains Judgments Against Enzyme Environmental Solutions, Inc. and Its Officer Jared E. Hochstedler
The Securities and Exchange Commission announced today that, on Dec. 17, 2010, the Honorable Gregory A. Presnell of the United States District Court for the Middle District of Florida entered Final Judgments against Enzyme Environmental Solutions, Inc. (EESO) and its sole director and officer, Jared E. Hochstedler. The Commission's complaint alleged that the defendants engaged in a scheme to evade the registration requirements of Section 5 of the Securities Act of 1933. The complaint further alleged that, under the guise of converting debt obligations into shares, EESO and Hochstedler distributed over two billion shares of EESO stock to the public through stock distributors in unregistered transactions. The defendants consented to entry of the Final Judgments without admitting or denying the allegations in the complaint.
The Final Judgments permanently enjoin EESO and Hochstedler from violating Sections 5(a) and (c) of the Securities Act and require them to pay disgorgement, prejudgment interest and, in the case of EESO, civil penalties. EESO consented to an entry of a judgment ordering it to disgorge $346,135 plus prejudgment interest and to pay a civil penalty of $25,000. Hochstedler consented to the entry of a judgment ordering him to disgorge $1,445,000 plus prejudgment interest and, based upon his financial condition, waiving all but $385,000, $65,000 of which will be paid within 30 days of the entry of judgment and the balance within 24 months of the entry of judgment. With this settlement, the action is fully resolved as to all defendants. [SEC v. K&L International Enterprises, Inc., et al., Case No. 6:09-cv-1638-Orl-31KRS (M.D. Fla.)] (LR-21796)
INVESTMENT COMPANY ACT RELEASES
Nuveen Asset Management, et al.
An order has been issued on an application filed by Nuveen Asset Management, et al., under Section 6(c) of the Investment Company Act for an exemption from Rule 12d1-2(a) under the Act. The order permits open-end management investment companies relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-29546 - December 30)
SELF-REGULATORY ORGANIZATIONS
Proposed Rule Changes
The Options Clearing Corporation filed a proposed rule change (SR-OCC-2010-19) under Section 19(b)(1) of the Securities Exchange Act of 1934. The proposed rule change would provide OCC’s clearing members with clarification regarding the regulatory treatment under Exchange Act Rule 15c3-1 of collateral and margin posted by clearing members participating in stock loan transactions through OCC’s Stock Loan/Hedge Program or Market Loan Program. Publication is expected in the Federal Register during the week of January 3. (34-63623)
NYSE Arca filed a proposed rule change (SR-NYSEArca-2010-120) under Section 19(b)(1) of the Securities Exchange Act of 1934 relating to listing and trading shares of the SPDR Nuveen S&P High Yield Municipal Bond ETF. Publication is expected in the Federal Register during the week of January 3. (34-63624)
The Commission issued notice of a proposed rule change (SR-NYSEArca-2010-119) submitted by NYSE Arca pursuant to Rule 19b-4 under the Securities Exchange Act of 1934, to list and trade shares of the Teucrium WTI Crude Oil Fund under NYSE Arca Equities Rule 8.200. Publication is expected in the Federal Register during the week of January 3. (34-63625)
Immediate Effectiveness of Proposed Rule Change
A proposed rule change filed by NASDAQ OMX PHLX relating to a pilot program for cabinet trading below $1.00 per contract until June 1, 2011 (SR-Phlx-2010-185) 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. (34-63626)
Approval of Proposed Rule Change
The Commission approved a proposed rule change (SR-Phlx-2010-153) filed by NASDAQ OMX PHLX to update and streamline the process for specialist evaluations and clarify the time within which SQTs and RSQTs must begin to electronically quote after assignment. Publication is expected in the Federal Register during the week of January 3. (34-63627)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS
http://www.sec.gov/news/digest/2011/dig010311.htm
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