 |
Home | Previous Page | |
|
||
 |
|
|
|
||
 |
|
|
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
COMMISSION ANNOUNCEMENTSMark K. Schonfeld, Director of New York Regional Office, Leaving After 12 Years of Service at SECThe Securities and Exchange Commission today announced that Mark K. Schonfeld, the Director of the New York Regional Office, will conclude 12 years of dedicated service when he leaves the agency at the end of September to become a partner at the law firm of Gibson, Dunn & Crutcher, where he will be co-head of the Securities Enforcement Defense practice and a member of the White Collar Defense, Investigations and Crisis Management practices. Mr. Schonfeld has led the SEC's New York office through one of the most vibrant and rapidly evolving periods in the history of the Commission and in securities law enforcement. Under his direction, the office brought a series of cutting-edge cases dealing with complex accounting fraud, mutual fund trading, hedge fund abuses, foreign bribery, insider trading and market manipulation. During this period, the New York office recovered more than $3 billion for investors and effected overhauls in corporate governance and compliance programs at major financial institutions. As head of the SEC's largest regional office, Mr. Schonfeld oversaw nearly 400 SEC enforcement attorneys, accountants, investigators and compliance examiners engaged in the investigation and prosecution of enforcement actions and the performance of compliance inspections in the region. Situated in the nation's financial capital, the New York Regional Office also encompasses the largest concentration of SEC-registered financial institutions, including more than 4,000 investment banks, investment advisers, broker-dealers, mutual funds and hedge funds. "Mark's keen intellect and able leadership have been amply demonstrated through his exemplary achievements on behalf of the investing public," said SEC Chairman Christopher Cox. "Mark has built and led an outstanding team in the SEC's New York office that has consistently looked out for investors' interests through swift and significant actions that have deterred wrongdoing and punished violators. The nation's investors and our markets owe Mark an enormous debt of gratitude for his extraordinary public service." Linda Chatman Thomsen, Director of the SEC's Division of Enforcement, said, "Mark has been a creative, aggressive and tireless advocate for investors. Under his leadership, the New York Regional Office has brought hundreds of cases, many of them addressing the most urgent securities issues of the time. Not only is Mark not afraid of the tough issues, he thrives on them. Mark has been a terrific colleague to all of us, we will miss him and wish him all the very best." Lori Richards, Director of the SEC's Office of Compliance Inspections and Examinations, added, "Mark has been dedicated to the public interest throughout his career at the SEC. As Regional Director, Mark led an exam staff that is single-minded in identifying and addressing violations and deficiencies in an effective manner for the protection of investors. I will miss his calm and his humor under pressure, and the NYRO and other SEC staff will miss his committed leadership. Investors have been extraordinarily well-served by his service." Mr. Schonfeld said, "It has been an honor and a privilege to serve the Commission, particularly during such a dynamic period of its history. Above all else, I am grateful for the opportunity to work with my fellow staff members in New York and throughout the Commission who bring unparalleled talent, dedication and professionalism to the Commission's mission of protecting investors." Mr. Schonfeld, 45, has been with the SEC for 12 years, the last four years as Director of the New York Regional Office, a period in which the office brought numerous landmark actions including:
Recently, Mr. Schonfeld has led investigations arising from the subprime lending crisis. Mr. Schonfeld coordinated regulatory and enforcement initiatives with other federal and state law enforcement and financial regulatory agencies, including the Department of Justice and U.S. Attorneys offices, state Attorneys General, and securities regulators and self-regulatory organizations, such as the New York Stock Exchange and the Financial Industry Regulatory Authority. During Mr. Schonfeld's tenure, the examination staff of the New York Office conducted numerous important inspections of SEC registered firms, including some of the nation's largest broker-dealers, investment advisers, mutual funds, and transfer agents. It led significant risk-targeted examinations to assess potential industry trends and problems, including valuation practices for mortgage-backed securities. Mr. Schonfeld was a frequent participant in international training programs for foreign financial regulators and law enforcement agencies, and also was a member of the Commission's Diversity Committee on Mentoring and Professional Development. Mr. Schonfeld began working at the agency in 1996 as a staff attorney in the Enforcement Division in the SEC's Boston office. He became a Branch Chief in the New York office in 1998, Assistant Director in 1999, Associate Director and Co-Head of Enforcement for the New York office in 2001, and Director of the New York Regional Office in 2004. Mr. Schonfeld received a J.D., cum laude, from Harvard Law School in 1988 and a B.A., summa cum laude, and with Highest Distinction from the University of Rochester in 1984. Mr. Schonfeld was a law clerk to Hon. Ellsworth A. Van Graafeiland on the U.S. Court of Appeals for the Second Circuit. Prior to joining the SEC, Mr. Schonfeld was a litigator in private practice. (Press Rel. 2008-194) Commission MeetingsClosed Meeting - Wednesday, September 10, 2008 - 5:00 p.m.The subject matter of the closed meeting held on Wednesday, September 10, 2008, was: a matter related to a financial institution. 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 PROCEEDINGSCommission Orders Hearings on Registration Revocation Against Five Public Companies for Failure to Make Required Periodic FilingsOn September 10, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registration of each class of the securities of five companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the five issuers are delinquent in their required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of the securities of these respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-58503; File No. 3-13178) Securities and Exchange Commission Orders Hearing on Registration Revocation Against Four Public Companies for Failure to Make Required Periodic FilingsOn September 10, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registrations of each class of the securities of four companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the four issuers are delinquent in their required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-58504; File No. 3-13177) Securities and Exchange Commission Orders Hearing on Registration Revocation Against Six Public Companies for Failure to Make Required Periodic FilingsOn September 10, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registrations of each class of the securities of six companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the six issuers are delinquent in their required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-58505; File No. 3-13179) Securities and Exchange Commission Orders Hearing on Registration Revocation Against Ten Public Companies for Failure to Make Required Periodic FilingsOn September 10, the Commission instituted public administrative proceedings to determine whether to revoke or suspend for a period not exceeding twelve months the registrations of each class of the securities of ten companies for failure to make required periodic filings with the Commission:
In this Order, the Division of Enforcement (Division) alleges that the ten issuers are delinquent in their required periodic filings with the Commission. In this proceeding, instituted pursuant to Exchange Act Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At the hearing, the judge will hear evidence from the Division and the respondents to determine whether the allegations of the Division contained in the Order, which the Division alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, are true. The judge in the proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of each class of the securities of these respondents should be revoked or suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in this proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. (Rel. 34-58506; File No. 3-13180) Patrick A. Rossetti, CPA Reinstated to Appear and Practice Before the Commission as an Accountant Responsible for the Preparation or Review of Financial Statements Required to be Filed With the CommissionPursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice, Patrick A. Rossetti, CPA has applied for and been granted reinstatement of his privilege to appear and practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission. Mr. Rossetti was denied the privilege of appearing or practicing before the Commission as an accountant on May 2, 2001. His reinstatement is effective immediately. (Rel. 34-58507; AAE Rel. 2875; File No. 3-10354) Commission Revokes Registration of Securities of SUMmedia.Com, Inc. for Failure to Make Required Periodic FilingsOn September 11, the Commission revoked the registration of each class of registered securities of SUMmedia.com, Inc. (SUMmedia) for failure to make required periodic filings with the Commission. Without admitting or denying the findings in the Order, except as to jurisdiction, which it admitted, SUMmedia consented to the entry of an Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to SUMmedia.com, Inc. finding that it had failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of SUMmedia’s securities pursuant to Section 12(j) of the Exchange Act. This order settled the charges brought against SUMmedia in the Matter of Consolidated Growers and Processors, Inc., et al., Administrative Proceeding File No. 3-13141. Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows: No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . . For further information see Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, In the Matter of Consolidated Growers and Processors, Inc., et al., Administrative Proceeding File No. 3-13141, Exchange Act Release No. 58391 (Aug. 20, 2008). (Rel. 34-58510; File No. 3-13141) Commission Revokes Registration of Securities of OVM International Holding Corp. for Failure to Make Required Periodic FilingsOn September 11, the Commission revoked the registration of each class of registered securities of OVM International Holding Corp. (OVM) for failure to make required periodic filings with the Commission. Without admitting or denying the findings in the Order, except as to jurisdiction, which it admitted, OVM consented to the entry of an Order Making Findings and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 as to OVM International Holding Corp. finding that it had failed to comply with Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 13a-1 and 13a-13 thereunder and revoking the registration of each class of OVM’s securities pursuant to Section 12(j) of the Exchange Act. This order settled the charges brought against OVM in In the Matter of Ocean Resources, Inc., et al., Administrative Proceeding File No. 3-13139. Brokers and dealers should be alert to the fact that Exchange Act Section 12(j) provides, in pertinent part, as follows: No member of a national securities exchange, broker, or dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security the registration of which has been and is suspended or revoked . . . . For further information see Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934, In the Matter of Ocean Resources, Inc., et al., Administrative Proceeding File No. 3-13139, Exchange Act Release No. 58384 (Aug. 19, 2008). (Rel. 34-58511; File No. 3-13139) Commission Charges Financial Services Firm with Failing to Safeguard Customer PrivacyThe Commission today announced it instituted a settled enforcement action against LPL Financial Corporation (LPL), a financial services firm, for LPL's failure to adopt policies and procedures reasonably designed to safeguard personal customer information as it was required to do. The action arises from a series of hacking incidents into LPL's online trading platform. The Commission's administrative order against LPL finds that LPL conducted an internal audit in mid-2006 in which it had identified inadequate security controls to safeguard customer information at its branch offices. Further, LPL's audit noted that the firm's trading platform had weaknesses in the area of password complexity and session inactivity, and the audit specifically identified the risk from hacking. The Commission's order finds that LPL failed to take timely corrective action because, by the time of the first hacking incidents in July 2007, it had not implemented increased security measures in response to the identified weaknesses. The Commission ordered LPL to cease and desist from committing or causing any violations and any future violations of the Safeguards Rule of Regulation S-P (17 CFR §248.30(a)), censured it for its conduct, and ordered it to pay a $275,000 penalty. LPL further agreed to undertake certain remedial actions including retaining an independent consultant to review LPL's policies and procedures required by the Safeguards Rule and to devise and implement a policy and set of procedures for training its employees and all registered representatives regarding safeguarding customer records and information. LPL consented to the entry of the Commission's order without admitting or denying the Commission's findings. (Rels. 34-58515; IA-2775; File No. 3-13181) INVESTMENT COMPANY ACT RELEASESGlobal X Funds and Global X Management Company LLCA notice has been issued giving interested persons until Oct. 2, 2008, to request a hearing on an application filed by Global X Funds and Global X Management Company LLC for an order to permit (a) series of registered open-end management investment companies whose portfolios will consist of the securities of equity securities indices to issue shares that can be redeemed only in large aggregations, (b) secondary market transactions in shares of the series to occur at negotiated prices, (c) dealers to sell the series' shares to purchasers in the secondary market unaccompanied by a prospectus when prospectus delivery is not required by the Securities Act of 1933, (d) certain affiliated persons of the series to deposit securities into, and receive securities from, the series, (e) certain series to pay redemption proceeds more than seven days after the tender of shares for redemption under certain circumstances, and (f) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire shares. (Rel. IC-28378 - September 10) SELF-REGULATORY ORGANIZATIONSProposed Rule ChangeNYSE Arca, through its wholly owned subsidiary, NYSE Arca Equities, Inc., filed with the Securities and Exchange Commission a proposed rule change (SR-NYSEArca-2008-89) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder amending NYSE Arca Equities Rule 5.2(j)(3) in connection with generic listing standards for Multiple Fund Shares and Inverse Fund Shares. Publication in the Federal Register is expected during the week of September 15. (Rel. 34-58484) Approval of Proposed Rule ChangesThe Commission approved a proposed rule change (SR-NYSE-2008-58) submitted pursuant to Section 19(b)(1) and Rule 19b-4 under the Securities Exchange Act of 1934 by the New York Stock Exchange to make permanent a pilot program under which the Exchange excludes from its earnings standard gains or losses from extinguishment of debt prior to maturity. Publication in the Federal Register is expected during the week of September 15. (Rel. 34-58499) The Commission approved a proposed rule change (SR-NYSE-2008-57) submitted pursuant to Section 19(b)(1) and Rule 19b-4 under the Securities Exchange Act of 1934 by the New York Stock Exchange to adopt on a permanent basis a pilot program which allows the Exchange to adjust the earnings of companies for purposes of its earnings standard by reversing the income statement effects of changes in fair value of financial instruments extinguished at the time of listing. Publication in the Federal Register is expected during the week of September 15. (Rel. 34-58500) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2008/dig091108.htm
|