SEC NEWS DIGEST Issue 2005-185 September 26, 2005 COMMISSION ANNOUNCEMENTS COMMISSION MEETINGS CLOSED MEETING – THURSDAY, SEPTEMBER 29, 2005 – 3:00 P.M. The following item has been added to the closed meeting scheduled for Thursday, September 29, 2005: Formal order of investigation. 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 DEFAULT ORDER AGAINST DIVEDEPOT.COM, INC. On September 26, an Administrative Law Judge issued an Order Making Findings and Revoking Registrations Pursuant to Section 12(j) of the Securities Exchange Act of 1934 in Divedepot.Com, Inc., Exchange Act Rel. No. 34-52507. The Order Instituting Proceedings (OIP) alleges that Divedepot.com, Inc.; GS Telecom Ltd.; Rocky Mountain Financial Enterprises, Inc.; and US Data Authority, Inc., each have a class of securities registered with the Commission, and each is delinquent in its periodic filing obligations under Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder. The Administrative Law Judge finds the companies in default and that the allegations in the OIP were true. The Default Order revokes the registration of each class of securities of Divedepot.com, Inc.; GS Telecom Ltd.; Rocky Mountain Financial Enterprises, Inc.; and US Data Authority, Inc. (Rel. 34-52507; File No. 3-12006) SEC FILES SETTLED ENFORCEMENT ACTION AGAINST HARVEY TABB On September 20, the Commission filed suit in federal court in Los Angeles charging Harvey P. Tabb, a repeat securities law violator who is the subject of a permanent injunction obtained by the Commission in 1995, with violating the antifraud and securities registration provisions of the federal securities laws in connection with his offering of interests in a wine grape venture in Temecula, California called “Buy the Vine.” The complaint alleges that, between spring 2001 and September 2003, Tabb raised approximately $2.3 million for Buy the Vine from 50 investors nationwide by selling securities in the form of purported “general partnership” interests through general public solicitation. According to the complaint, when selling the securities, Tabb misrepresented and omitted to disclose information relating to the projected returns on the grape vineyards, the funds needed to operate the venture, the ownership of the vineyard lands, and the business experience and disciplinary histories possessed by him and his son, who was touted as a manager of the venture. The complaint also alleges that Tabb misappropriated investor funds for purposes undisclosed to investors. Without admitting or denying the Commission’s allegations, Tabb consented to the entry of a final judgment that permanently enjoins him from (1) violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and (2) participating in the sale of or offer to sell any security, including purported partnership interests, in an unregistered transaction. Tabb also agreed to pay a civil penalty of $50,000. The final judgment is subject to court approval. [SEC v. Harvey P. Tabb, Civil Action No. EDCV 05-00877, SGL, USDC, CDCA] (LR- 19392) SEC SUES TWO INDIVIDUALS FOR INSIDER TRADING AT LENDINGTREE; U.S. ATTORNEY FOR THE WESTERN DISTRICT OF NORTH CAROLINA CHARGES FORMER LENDINGTREE VICE PRESIDENT WITH OBSTRUCTION OF JUSTICE Today the Securities and Exchange Commission announced that it filed an insider trading complaint in the United States District Court for the Western District of North Carolina against Brian G. Paquette, the former Vice President of Product Management at LendingTree, Inc., and William G. Lawrence, a LendingTree employee. LendingTree is a financial services company based in Charlotte, N.C. The Commission’s complaint alleges that shortly before the May 5, 2003, public announcement that LendingTree was being acquired by USA Interactive at a substantial premium to LendingTree shareholders, Paquette improperly provided material nonpublic information concerning the pending acquisition to Lawrence and to a close friend and business associate outside the company. The complaint alleges that both Lawrence and Paquette’s second tippee then purchased shares of LendingTree while in possession of this material nonpublic information. The complaint further alleges that after the announcement, the price of LendingTree stock soared, and Lawrence and the second tippee sold their shares realizing unlawful profits of $2,109 and $12,420, respectively. Without admitting or denying the allegations in the complaint, Paquette and Lawrence consented to the entry of final judgments against them that permanently enjoin them from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgments also require Paquette to pay a $29,058 civil penalty, which is equal to two times the trading profits of his tippees, and require Lawrence to disgorge his illegal trading profits of $2,109, plus prejudgment interest, and pay a two-time civil penalty of $4,218. In a related criminal case, the U.S. Attorney’s Office for the Western District of North Carolina announced today that Paquette has agreed to plead guilty to a felony obstruction of justice charge, for providing false testimony in the Commission’s investigation. The Commission wishes to thank the U.S. Attorney’s Office for its assistance in connection with this matter. The Commission previously has filed other insider trading cases arising from this investigation. See SEC v. Ricks, Woody, and Mead, No. 3:04CV576, W.D.N.C. Nov. 22, 2004, LR-18983; SEC v. Talbot, No. CV 04- 4556, C.D., Cal. June 24, 2004, LR-18762; and SEC v. Bartlett, No. 3:03CV463, W.D.N.C., Sept. 24, 2003. The Commission’s investigation continues. [SEC v. Brian G. Paquette and William G. Lawrence, Civil Action No. 3:05CV412, W.D.N.C.] (LR-19993) HOLDING COMPANY ACT RELEASE ENTERGY CORPORATION An order has been issued authorizing Entergy Corporation, a registered holding company under the Public Utility Holding Company Act, and Entergy New Orleans Inc., a bankrupt, wholly-owned utility subsidiary of Entergy, to enter into a credit facility under which Entergy New Orleans will obtain debtor-in-possession financing from Entergy in an amount of up to $150 million. (Rel. 35-28036) SELF REGULATORY ORGANIZATIONS IMMEDIATE EFFECTIVENESS OF PROPOSED RULE CHANGES A proposed rule change (SR-Amex-2005-087) filed by the American Stock Exchange to revise its options transaction fees has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication of the proposal is expected in the Federal Register during the week of September 26. (Rel. 34-52493) A proposed rule change filed by the Chicago Board Options Exchange (SR- CBOE-2005-70) to extend a pilot program relating to market-maker access to the Hybrid automatic execution system has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication of the proposal is expected in the Federal Register during the week of September 26. (Rel. 34-52494) ACCELERATED APPROVAL OF PROPOSED RULE CHANGE The Commission noticed and granted accelerated approval to a proposed rule change (SR-CBOE-2005-58) submitted by the Chicago Board Options Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 relating to the CBOE’s Preferred Designated Primary Market-Maker Program. Publication is expected in the Federal Register during the week of September 26. (Rel. 34-52506) PROPOSED RULE CHANGE The American Stock Exchange filed a proposed rule change and Amendment No. 1 thereto (SR-Amex-2005-056) to provide that registered options traders may only sign on to Auto-Ex for Exchange-Traded Funds traded by the same or adjoining specialists for a maximum of three contiguous Panels and shall sign on to Auto-Ex for a maximum of fifteen Exchange- Traded Funds. Publication of the proposal is expected in the Federal Register during the week of September 26. (Rel. 34-52505) APPROVAL OF PROPOSED RULE CHANGES The Commission approved a proposed rule change (SR-Phlx-2005-14) and Amendment No. 1 thereto, filed by the Philadelphia Stock Exchange under Rule 19b-4 under the Securities Exchange Act of 1934, relating to the order matching at the opening in the PACE System. Publication is expected in the Federal Register during the week of September 26. (Rel. 34-52495) The Commission approved a proposed rule change filed by the Municipal Securities Rulemaking Board (SR-MSRB-2005-12) under Section 19(b)(2) of the Securities Exchange Act of 1934 concerning solicitation and coordination of payments to political parties and question and answ4er guidance on supervisory procedures related to Rule G-37(d) on indirect violations. (Rel. 34-52496) The Commission approved a proposed rule change (SR-BSE-2005-30) and Amendment No. 2 thereto, under Section 19(b)(1) of the Securities Exchange Act of 1934 by the Boston Stock Exchange relating to the removal of unreliable quotes from the Exchange’s determination of the National Best Bid or Offer. Publication of the approval order is expected in the Federal Register during the week of September 26. (Rel. 34-52501) The Commission approved a proposed rule change and Amendment No. 1 thereto, filed by the Pacific Exchange through its wholly-owned subxidiary, PCX Equities, Inc. (SR-PCX-2005-19), relating to proposed new listing fees. Publication of the order is expected in the Federal Register during the week of September 26. (Rel. 34-52502) DELISTINGS An order has been issued granting the application of the American Stock Exchange to strike from listing and registration the common stock, $.00001 par value, of CNE Group, Inc., effective at the opening of business on September 26. (Rel. 34-52499) An order has been issued granting the application of the American Stock Exchange to strike from listing and registration the common stock, $.01 par value, of Avitar, Inc., effective at the opening of business on September 26. (Rel. 34-524500) SECURITIES ACT REGISTRATIONS The following registration statements have been filed with the SEC under the Securities Act of 1933. The reported information appears as follows: Form, Name, Address and Phone Number (if available) of the issuer of the security; Title and the number and/or face amount of the securities being offered; Name of the managing underwriter or depositor (if applicable); File number and date filed; Assigned Branch; and a designation if the statement is a New Issue. Registration statements may be obtained in person or by writing to the Commission's Public Reference Branch at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the following e-mail box address: . In most cases, this information is also available on the Commission's website: . SB-2 HydroGen CORP, 1801 ROUTE 51 SOUTH, JEFFERSON HILLS, PA, 15025, 480-759-9400 - 4,438,224 ($34,840,058.40) Equity, (File 333-128505 - Sep. 23) (BR. 10A) S-8 OREGON STEEL MILLS INC, 1000 SW BROADWAY, STE 2200, PORTLAND, OR, 97205, 5032405788 - 500,000 ($13,330,000.00) Equity, (File 333-128507 - Sep. 23) (BR. 06A) S-2 PDG ENVIRONMENTAL INC, 300 OXFORD DR, N PARK DR & BROWNING RD, MONROEVILLE, PA, 15146, 4128562200 - 16,442,709 ($37,407,162.98) Equity, (File 333-128508 - Sep. 23) (BR. 06B) RECENT 8K FILINGS Form 8-K is used by companies to file current reports on the following events: 1.01 Entry into a Material Definitive Agreement 1.02 Termination of a Material Definitive Agreement 1.03 Bankruptcy or Receivership 2.01 Completion of Acquisition or Disposition of Assets 2.02 Results of Operations and Financial Condition 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation under an Off-Balance Sheet Arrangement 2.05 Cost Associated with Exit or Disposal Activities 2.06 Material Impairments 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing 3.02 Unregistered Sales of Equity Securities 3.03 Material Modifications to Rights of Security Holders 4.01 Changes in Registrant’s Certifying Accountant 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review 5.01 Changes in Control of Registrant 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year 5.04 Temporary Suspension of Trading Under Registrant's Employee Benefit Plans 5.05 Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics 6.01. ABS Informational and Computational Material. 6.02. Change of Servicer or Trustee. 6.03. Change in Credit Enhancement or Other External Support. 6.04. Failure to Make a Required Distribution. 6.05. Securities Act Updating Disclosure. 7.01 Regulation FD Disclosure 8.01 Other Events 9.01 Financial Statements and Exhibits 8-K reports may be obtained in person or by writing to the Commission's Public Reference Branch at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the following e-mail box address: . In most cases, this information is also available on the Commission's website: . STATE 8K ITEM NO. NAME OF ISSUER CODE DATE COMMENT ALLIANCE PHARMACEUTICAL CORP NY 1.01,9.01 09/19/05 AVANIR PHARMACEUTICALS CA 8.01,9.01 09/22/05 BALLISTIC RECOVERY SYSTEMS INC MN 1.01,8.01,9.01 09/19/05 BDC Capital, Inc. MN 5.02 05/13/05 AMEND BEAR STEARNS COMPANIES INC DE 8.01,9.01 09/21/05 Celanese CORP DE 7.01,9.01 09/22/05 CENTRAL AMERICAN EQUITIES INC FL 4.01 09/21/05 COMMUNITY INVESTORS BANCORP INC OH 3.01,3.03,8.01,9.01 09/22/05 DDI CORP CA 9.01 09/21/05 AMEND DHB INDUSTRIES INC DE 8.01,9.01 09/16/05 DRS TECHNOLOGIES INC DE 1.01,9.01 09/21/05 EVERGREENBANCORP INC WA 8.01 09/22/05 GAMCO INVESTORS, INC. ET AL NY 8.01,9.01 09/22/05 GE Capital Credit Card Master Note Tr DE 8.01,9.01 09/15/05 GE Capital Credit Card Master Note Tr DE 8.01,9.01 09/15/05 GENE LOGIC INC DE 2.06,8.01,9.01 09/20/05 GLOBAL ENTERTAINMENT CORP NV 8.01,9.01 08/29/05 GLOBAL PAYMENTS INC GA 2.02,9.01 09/22/05 H-Lines Finance Holding Corp. DE 8.01 09/22/05 HARTFORD FINANCIAL SERVICES GROUP INC DE 5.02 09/22/05 AMEND Horizon Lines Holding Corp. 8.01 09/22/05 IAC/INTERACTIVECORP DE 1.01,3.01,9.01 09/19/05 ING USA ANNUITY & LIFE INSURANCE CO IA 9.01 09/22/05 ING USA ANNUITY & LIFE INSURANCE CO IA 9.01 09/22/05 IRWIN FINANCIAL CORP IN 8.01 09/22/05 JLG INDUSTRIES INC PA 7.01 09/22/05 LIMELIGHT MEDIA GROUP INC NV 9.01 06/30/05 AMEND MIRANT AMERICAS GENERATING LLC DE 7.01,8.01,9.01 09/22/05 MIRANT CORP DE 7.01,8.01,9.01 09/22/05 MIRANT MID ATLANTIC LLC DE 7.01,8.01,9.01 09/22/05 NAVIGATORS GROUP INC DE 8.01 09/22/05 NEW FRONTIER ENERGY INC CO 3.02,5.03,9.01 07/05/05 AMEND PACIFIC FUEL CELL CORP NV 2.02,9.01 09/22/05 PICO HOLDINGS INC /NEW CA 1.01,1.02 09/21/05 TECHNOLOGY INVESTMENT CAPITAL CORP MD 8.01,9.01 09/20/05 TELEPHONE & DATA SYSTEMS INC /DE/ DE 2.05,2.06 09/22/05 UNITED STATES CELLULAR CORP DE 2.05,2.06 09/22/05 WASHINGTON MUTUAL MORTGAGE SECURITIES DE 9.01 09/22/05 WELLS FARGO ASSET SECURITIES CORP DE 8.01,9.01 09/21/05 WELLS FARGO ASSET SECURITIES CORP DE 8.01,9.01 09/21/05 WENTWORTH ENERGY, INC. OK 8.01 09/22/05