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COMMISSION ANNOUNCEMENTSSupervisory Agencies Issue Joint Report Assessing Risk Management PracticesSenior financial supervisors from five countries today issued a report that assesses a range of risk management practices among a sample of major global financial services organizations. This report - Observations on Risk Management Practices during the Recent Market Turbulence - summarizes a joint review that supervisors initiated this past autumn. The seven supervisory agencies participating in this project are the French Banking Commission, the German Federal Financial Supervisory Authority, the Swiss Federal Banking Commission, the U.K. Financial Services Authority, and, in the United States, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, and the Federal Reserve. The report also reflects the results of a roundtable discussion that participating supervisory agencies held with industry representatives on Feb. 19, 2008, at the Federal Reserve Bank of New York. Supervisors undertook this effort to evaluate the effectiveness of current risk management practices during this period of stress. These observations could then be used in supervising individual firms and in assessing potential future changes in supervisory requirements, guidance and expectations. This work was also undertaken in response to a request from the Financial Stability Forum, whose mission is to promote international financial stability, improve the functioning of markets, and reduce systemic risk. The Financial Stability Forum has established a Working Group on Market and Institutional Resilience that is preparing a separate report to the Finance Ministers and Central Bank Governors of the G-7 countries on the underlying causes of recent financial market turmoil and will make appropriate recommendations. The report's key observations and proposed supervisory responses are summarized in a transmittal letter to the chairman of the Financial Stability Forum. (Press Rel. 2008-33) Office of the Chief Accountant Selects Six Professional Accounting FellowsThe Securities and Exchange Commission's Office of the Chief Accountant has selected six professional accounting fellows for two-year terms beginning in 2008:
The six will join the current professional accounting fellows - Adam Brown, Muneera Carr, Jeffrey E. Ellis, Robert G. Fox III, Robert B. Malhotra, Liza McAndrew Moberg and Brett A. Williams. Outgoing professional accounting fellows are Mark J. Barrysmith, Ashley W. Carpenter, Sandie E. Kim and Katrina A. Kimpel. At the Commission, the newly selected professional accounting fellows will be involved in the study and development of rule proposals under the federal securities laws, liaison with accounting, auditing and other professional standard-setting bodies, and consultation with registrants on reporting matters. "I look forward to working with this highly experienced group of individuals as we address the many challenging issues on our agenda. I am confident that their experiences and knowledge will help us achieve our goals. I also would like to thank the outgoing professional accounting fellows and wish them the very best as they continue to advance their careers," said Conrad Hewitt, SEC Chief Accountant. (Press Rel. 2008-34) ENFORCEMENT PROCEEDINGSIn the Matter of Peter S. LynchOn March 5, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 9(f) of the Investment Company Act of 1940, Making Findings, and Imposing a Cease-and-Desist Order as to Peter S. Lynch (Lynch). The Order finds that Lynch has been associated with Fidelity Management & Research Company (FMR) and FMR Co., Inc. (FMR Co.) (collectively, Fidelity) in various capacities since 1969, and was the portfolio manager of Fidelity Investment's Magellan Fund from 1977 to 1990. The Order further finds that, since retiring from Magellan, Lynch has been the vice chairman and a director of FMR and FMR Co. According to the Order, Lynch was an interested trustee of the Fidelity family of mutual funds from 1990 until February 2003, and has since served as a member of the Advisory Board of the Fidelity family of mutual funds. The Order finds that, during the period from 1999 to October 2004, Lynch requested and received approximately 61 tickets to 12 concerts and sporting and theater events from two traders on Fidelity's equity trading desk, Robert Burns (Burns) and Jeffrey Harris (Harris), who in turn obtained the tickets from brokers. According to the Order, the total value of those tickets was approximately $15,948. The Order also finds that the tickets Lynch received included seats to various events, including eleven tickets to a U2 concert, and 14 three-day passes to the 1999 Ryder Cup golf tournament held at The Country Club in Brookline, Massachusetts, and at least six tickets to the Ryder Cup golf tournament in Michigan in 2004. The Order also finds that Lynch obtained tickets to a Santana concert from Harris, who requested and received the tickets from a brokerage firm doing business with Fidelity. The Order further finds that Lynch knew those tickets were provided by various brokers who handled and/or sought Fidelity's brokerage business. Furthermore, the Order finds that Lynch did not reimburse brokers for any of the tickets obtained for him from brokers. By requesting that Burns and Harris obtain tickets for him, which they did by soliciting them from brokers, Lynch caused Burns' and Harris' violations of Section 17(e)(1) of the Investment Company Act. Based on the above, the Order orders Lynch to pay disgorgement and prejudgment interest in the amount of $20,132.51 and orders him cease and desist from committing or causing any violations and any future violations of Section 17(e)(1) of the Investment Company Act. Lynch consented to the issuance of the Order without admitting or denying any of the findings. (IC-28189; File No. 3-12980) In the Matter of Fidelity Management & Research Company and FMR Co., Inc.On March 5, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (the Order) against Fidelity Management & Research Company (FMR) and FMR Co., Inc. (FMR Co.) (collectively, Fidelity). The Order finds that during the period from January 1, 2002 to October 2004 (the Relevant Period), two Fidelity executives (Scott E. DeSano and Bart A. Grenier) and ten traders on Fidelity's Boston domestic equity trading desk, (Marc C. Beran, Thomas H. Bruderman, Timothy J. Burnieika, Robert L. Burns, David K. Donovan, Edward S. Driscoll, Jeffrey D. Harris, Christopher J. Horan, Steven P. Pascucci, and Kirk C. Smith) variously accepted, in aggregate, more than $1.6 million in travel, entertainment and gifts from brokerage firms that sought and obtained orders to buy or sell securities on behalf of the registered investment companies marketed under the "Fidelity Investments" trade name and managed by FMR (Fidelity Funds). In addition, the Order finds that another Fidelity executive, Peter S. Lynch, requested and received tickets to events from two equity traders, who obtained those tickets from brokers. The Order finds that Fidelity failed to seek best execution for its clients' securities transactions by allowing its traders' receipt of travel, entertainment and gifts and the traders' family or romantic relationships with brokers to enter into their selection of brokers; failed to disclose to its clients, including the Fidelity Funds, the material conflict of interest arising from the receipt by Fidelity executives and traders of travel, entertainment and gifts (including illegal drugs and gambling) paid for by brokers, and certain traders' family or romantic relationships with, brokers seeking and obtaining securities transactions for Fidelity's clients. In addition, the Order finds that Fidelity made materially false and misleading statements and omissions in its Forms ADV and in Statements of Additional Information for the Fidelity Funds about its selection of brokers, and made materially false and misleading statements and omissions to the trustees of the Fidelity Funds concerning the factors considered in its selection of brokers and the bases upon which brokers competed for the Fidelity Funds' brokerage business. The Order also finds that two Fidelity executives and ten equity traders received compensation in violation of Section 17(e)(1) of the Investment Company Act in the form of travel, entertainment and/or gifts paid for by brokers, and that another Fidelity executive (Lynch) caused two Fidelity traders' violations of Section 17(e)(1). According to the Order, Fidelity failed to adopt and implement a system of controls sufficient to detect, deter, and prevent the receipt by these executives and traders of travel, entertainment and gifts paid for by brokers and, as a result, Fidelity failed reasonably to supervise the executives and traders. The Order also finds that Fidelity failed to make and keep true, accurate, and current originals or copies of certain communications with brokers concerning the placing or execution of orders to purchase or sell securities. By virtue of its conduct, Fidelity willfully violated Sections 204, 206(2) and 207 of the Advisers Act and Rules 204-1, 204-2(g) and 204-2(a)(7)(iii), thereunder, and Section 34(b) of the Investment Company Act. In addition, Fidelity failed reasonably to supervise the three Fidelity executives and ten Fidelity equity traders, within the meaning of Section 203(e)(6) of the Advisers Act, with a view to preventing their committing and/or causing violations of Section 17(e)(1) of the Investment Company Act. Based on the above, the Order censures Fidelity; orders Fidelity to pay a civil money penalty in the amount of $8 million; and orders Fidelity to cease and desist from committing or causing any violations and any future violations of Sections 204, 206(2) and 207 of the Advisers Act and Rules 204-1 and 204-2, thereunder, and Section 34(b) of the Investment Company Act. Fidelity consented to the issuance of the Order without admitting or denying any of the findings. (IA-2713; File No. 3-12976) In the Matter of Bart A. GrenierOn March 5, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 203(f) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (the Order) against Bart A. Grenier (Grenier). The Order finds that at all relevant times, Grenier was a senior vice president of FMR Co., Inc. (FMR Co.), a wholly owned subsidiary of Fidelity Management and Research Company (FMR) that provides portfolio management services as a sub-adviser to certain clients of FMR, including the registered investment companies marketed under the "Fidelity Investments" trade name. The Order further finds that during the period from January 1, 2002 to October 2004, Grenier accepted approximately $38,500 worth of tickets to concerts and sporting events, which were given to him directly or indirectly by representatives of at least five broker-dealers. Grenier secured tickets to several of the events by requesting that the then head of FMR Co.=s equity trading desk, Scott DeSano (DeSano), who reported directly to Grenier, obtain the tickets for him. Grenier obtained the balance of the tickets directly from broker-dealers that traded securities for and provided securities research to FMR Co. By virtue of his conduct, Grenier willfully violated Section 17(e)(1) of the Investment Company Act and caused DeSano's violations of Section 17(e)(1) of the Investment Company Act. Based on the above, the Order censures Grenier; orders him to pay disgorgement and prejudgment interest in the amount of $26,316.89, and a civil money penalty in the amount of $25,000; and orders Grenier to cease and desist from committing or causing any future violations of Section 17(e)(1) of the Investment Company Act. Grenier consented to the issuance of the Order without admitting or denying any of the findings. (IA-2714); File No. 3-12977) In the Matter of Scott E. Desano, Thomas H. Bruderman, Timothy J. Burnieika, Robert L. Burns, David K. Donovan, Edward S. Driscoll, Jeffrey D. Harris, Christopher J. Horan, Steven P. Pascucci and Kirk C. SmithOn March 5, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings and Notice of Hearing Pursuant to Sections 203(f) and 203(k) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (the Order) against Scott E. DeSano, Thomas H. Bruderman, Timothy J. Burnieika, Robert L. Burns, David K. Donovan, Edward S. Driscoll, Jeffrey D. Harris, Christopher J. Horan, Steven P. Pascucci, and Kirk C. Smith (collectively, the Respondents). The Division of Enforcement (Division) alleges that each of the Respondents was affiliated with FMR Co., Inc., a wholly owned subsidiary of Fidelity Management & Research Company (collectively, Fidelity), which provides portfolio management services to clients, including the registered investment companies marketed under the "Fidelity Investments" trade name (the Fidelity Funds). The Division alleges that, during the period from January 1, 2002 to October 2004 (the Relevant Period), the Respondents accepted, in aggregate, more than $1.5 million in travel, entertainment, and gifts from brokerage firms that sought and obtained orders for securities transactions on behalf of the Fidelity Funds. The Division alleges that those brokerage firms each received millions of dollars in commission revenue for handling orders for Fidelity. According to the Order, during the Relevant Period, Bruderman, Burnieika, Burns, Donovan, Driscoll, Harris, Horan, Pascucci, and Smith (the Respondent Traders) were employed as traders on Fidelity's Boston domestic equity trading desk, and DeSano was senior vice president in charge of global equity trading responsible for supervising more than 30 equity traders, including the Respondent Traders. The Division further alleges that DeSano and the Respondent Traders variously accepted from brokers, in aggregate, dozens of expensive trips, frequently by private jet; family vacations to Bermuda, Nantucket and the Caribbean; weekends in Las Vegas; lodging and golf outings at fine hotels and exclusive golf clubs; and an extravagant, three-day bachelor party for Bruderman in Miami (which DeSano attended). In addition, the Division alleges that Bruderman accepted illegal drugs from brokers, and Driscoll engaged in illegal gambling facilitated by a broker without disclosing that information to any manager at Fidelity. According to the Order, DeSano personally accompanied certain of the Respondent Traders on several trips by private jet paid for by brokers, including Bruderman's elaborate bachelor party, personally solicited tickets from brokers for himself and others, and was aware of additional private jet trips and tickets provided to Respondent Traders by brokers. The Division further alleges that DeSano knew that certain Fidelity traders directed transactions to brokers who provided them with travel, entertainment and gifts, and also to brokers with whom certain Fidelity traders had a familial or romantic relationship. The Division alleges that DeSano failed reasonably to supervise the Respondent Traders plus another equity trader, Marc Beran, whose receipt of travel and gifts was set forth in a separate administrative proceeding instituted today. The Division further alleges that DeSano failed to ensure that Fidelity's disclosures regarding broker selection were amended to reflect facts of which he was aware. Further, the Order alleges that DeSano made false and misleading statements to certain Fidelity Fund trustees concerning broker selection. The Order alleges that: the Respondents each willfully violated Section 17(e)(1) of the Investment Company Act, in that they received travel, entertainment and/or gifts (and illegal drugs for Bruderman and the facilitation of illegal gambling for Driscoll) from brokerage firms that sought and obtained brokerage business from Fidelity; that DeSano failed reasonably to supervise the Respondent Traders and Beran, within the meaning of Section 203(e)(6) of the Investment Advisers Act of 1940 ("Advisers Act"), with a view to preventing their violations of Section 17(e)(1) of the Investment Company Act; that DeSano aided and abetted and was a cause of Fidelity's violation of Section 206(1) and 206(2) through his materially false and misleading statements and omissions to the trustees of the Fidelity Funds concerning the factors considered in the selection of brokers and the bases upon which brokers competed for the Fidelity Funds' brokerage business; that DeSano was a cause of Fidelity's violation of Section 206(2) of the Advisers Act through its failure to seek best execution for its clients' securities transactions by allowing the traders' receipt of travel, entertainment and gifts and the traders' family or romantic relationships to enter into the traders' selection of brokers; DeSano was a cause of Fidelity's violation of Section 206(2) of the Advisers Act through its failure to disclose to its clients material conflicts of interest arising from certain Fidelity executives and traders' receipt of travel, entertainment and gifts paid for by brokers, and the traders' family or romantic relationships with brokers; that DeSano was also a cause of Fidelity's violations of Sections 204, 206(2) and 207 of the Advisers Act and Rule 204-1, thereunder, through its materially false and misleading statements and omissions in its Forms ADV about its selection of brokers; and that Bruderman and Driscoll were each a cause of Fidelity's violations of Section 206(2) of the Advisers Act by the receipt of illegal drugs for Bruderman from brokers, and the facilitation of illegal gambling for Driscoll by a broker. 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. (IC-28187; IA-2715); File No. 3-12978) In the Matter of Marc C. BeranOn March 5, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 203(f) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (the Order) against Marc C. Beran (Beran). The Order finds that at all relevant times, Beran was employed as a sector trader on the equity trading desk of FMR Co., Inc., a wholly owned subsidiary of Fidelity Management and Research Company (FMR) that provides portfolio management services as a sub-adviser to certain clients of FMR, including the registered investment companies marketed under the "Fidelity Investments" trade name (the Fidelity Funds). The Order further finds that during the period from January 1, 2002 to October 2004, Beran accepted over $11,000 worth of travel and tickets to theater and sporting events, which were given to him by at least five representatives of securities brokerage firms with which Beran, through FMR Co., conducted business on behalf of the Fidelity Funds. By virtue of his conduct, Beran willfully violated Section 17(e)(1) of the Investment Company Act. Based on the above, the Order censures Beran; orders him to pay disgorgement of $11,508.44 and prejudgment interest of $1,584.48, and a civil money penalty in the amount of $10,000; and orders Beran to cease and desist from committing or causing any future violations of Section 17(e)(1) of the Investment Company Act. Beran consented to the issuance of the Order without admitting or denying any of the findings. (IC-28188; IA-2716); File No. 3-12979) SEC Bars Registered Representative in Stock Manipulation SchemeThe Commission announced that it has settled an administrative proceeding previously instituted against Las Vegas-based registered representative John R. Glushko. In an Order Making Findings and Imposing Remedial Sanctions (Order) instituted on March 8, 2008, the Commission imposed, by consent, a bar against Glushko from association with any broker or dealer pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934. The Commission imposed the sanction based on the October 26, 2007 entry of a permanent injunction against Glushko, when the United States District Court for the District of Connecticut entered a final judgment by consent against Glushko permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 and Sections 9(a) and 10(b) of the Exchange Act and Rule 10b-5 thereunder in the action Securities and Exchange Commission v. Competitive Technologies, Inc., et al., Civil Action Number 3:04-CV-1331 (JCH). The Commission's Order included findings that during the relevant time period, Glushko was a registered representative associated with Finance 500, Inc., a broker-dealer registered with the Commission. In addition, the Commission's Complaint, filed on August 11, 2004, alleged that, from at least July 1998 through June 2001, Glushko, along with five other current or former registered representatives and the former CEO of Competitive Technologies, Inc. (CTT), artificially raised and maintained the price of CTT, an American Stock Exchange-listed stock, and created a false or misleading appearance with respect to the market for CTT stock through manipulative practices such as (i) placing buy orders at or near the close of the market in order to inflate the reported closing price (a practice known as "marking the close"), (ii) placing successive buy orders in small amounts at increasing prices (a practice known as "painting the tape"), and (iii) using accounts they controlled or serviced to place pre-arranged buy and sell orders in virtually identical amounts (a practice known as "matched trades") and to place other buy orders intended to minimize the negative impact on CTT's price from sales of the stock. In view of these findings, the Commission found it appropriate and in the public interest to impose the bar against Glushko from association with any broker or dealer. (Rel. 34-57435); File No. 3-12888) Commission Declares Initial Decision as to C.R. Williams, Inc. and Charles Russell Williams II FinalThe Commission has declared final an initial decision of an administrative law judge with respect to C.R. Williams, Inc. (CRW), and Charles Russell Williams II. The law judge found that CRW violated Sections 203A and 204 of the Investment Advisers Act of 1940 and Advisers Act Rules 203A-1(b)(2), 204-1(a)(1), 204-2(a)(1), 204-2(a)(2), and 204-2(a)(6). Williams, who controlled CRW, was found to have aided and abetted and caused CRW's violations. The initial decision found that CRW's violations were numerous and involved a high degree of scienter. The initial decision ordered CRW and Williams to cease and desist from committing or causing future violations of the recordkeeping and filing provisions of the Advisers Act. The initial decision also found that it was in the public interest to revoke CRW's investment adviser registration and to bar Williams from association with an investment adviser. The initial decision further ordered that a civil money penalty in the amount of $10,000 be paid jointly and severally by C.R. Williams, Inc., and Charles Russell Williams II. (IA-2717); File No. 3-12834) Initial Decision Barring Jonathan Carman Declared FinalThe Commission has declared final the initial decision of an administrative law judge barring Jonathan Carman from association with any broker or dealer. The initial decision found that, on Aug. 7, 2007, the United States District Court for the Central District of California enjoined Carman from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The initial decision found that Carman's misconduct was serious and involved a high degree of scienter. The initial decision determined that it was in the public interest to bar Carman from associating with any broker dealer. (Rel. 34-57437); File No. 3-12736) Commission Declares Initial Decision as to Diatect International Corporation FinalThe Commission has declared final an initial decision of an administrative law judge dismissing the proceedings against Diatect International Corporation. The law judge found that Diatect International violated Section 13(a) of the Securities Exchange Act of 1934 and Exchange Act Rules 13a-1 and 13a-13 by failure to file timely annual and quarterly reports between July 2005 through December 2007. The law judge also found that Diatect had subsequently filed its overdue periodic reports and was current in its reporting obligations and on this basis dismissed the proceeding. (Rel. 34-57438A); File No. 3-12843 (Correction)) In the Matter of Charles J. SpinelliOn March 6, the Commission issued an Order suspending Charles J. Spinelli, Esq., from appearing or practicing before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice. Spinelli is an attorney licensed to practice law in the state of New York. The Commission finds that on October 3, 2007, a judgment of conviction was entered against Spinelli in U.S. v. Charles J. Spinelli, No. 05-60212-CR-Jordan, in the U.S. District Court for the Southern District of Florida, finding him guilty of one count of conspiracy to commit wire fraud and one count of misprision of a felony. The court sentenced Spinelli to 21 months in federal prison to be served concurrently as to each count, and ordered him to pay restitution in the amount of $43.4 million. The Commission further finds that, in view of the foregoing, Spinelli has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission's Rules of Practice. (Rel. 34-57439; File No. 3-12981) Securities and Exchange Commission Institutes Administrative Proceedings Against Certified Services, Inc. for Failure to Make Required Periodic FilingsOn March 6, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 12(j) of the Securities Exchange Act of 1934 and Notice of Hearing (the Order) against Certified Services, Inc. (Certified) to determine whether the registration of each class of its securities should be suspended for a period not exceeding twelve months or revoked for failure to file required periodic reports. In the Order, the Division of Enforcement (Division) alleges that Certified failed to comply with Section 13(a) of the Securities Exchange Act of 1934 and Rules 13a-1 and 13a-13 thereunder by failing to file periodic reports required by these provisions. A hearing will be scheduled before an Administrative Law Judge to provide Certified with an opportunity to respond to the allegations of the Division contained in the Order, to determine whether these allegations are true, and to determine whether it is necessary and appropriate for the protection of investors to suspend for a period not exceeding twelve months or revoke the registration of each class of Certified's securities. The Commission ordered that the Administrative Law Judge in these proceedings issue an initial decision not later than 120 days from the date of service of the Order. (Rel. 34-57440; File No. 3-12982). In the Matter of William J. Rauwerdink, CPAOn March 6, the Commission issued an Order of Forthwith Suspension Pursuant to Rule 102(e)(2) of the Commission's Rules of Practice (Order) against William J. Rauwerdink. The Order finds that Rauwerdink is a certified public accountant in Michigan and that on June 20, 2007, Rauwerdink was convicted of one count of conspiracy to commit mail fraud, wire fraud, and bank fraud and to make false statements to a federal agency, and to one count of making false statements to a federal agency. The Order further finds that the conduct occurred while Rauwerdink was Chief Financial Officer of Lason, Inc., a publicly traded company, and that Rauwerdink was sentenced to 45 months imprisonment and 24 months supervised release, and ordered to pay restitution in the amount of $ 285,162,957.00. Based on the above, the Order forthwith suspends Rauwerdink from appearing or practicing before the Commission pursuant to Rule 102(e)(2) of the Commission=s Rules of Practice. The Commission wishes to thank the U.S. Attorney's Office for the Eastern District of Michigan for its assistance in this matter. (Rel. 34-57443); File No. 3-12983) In the Matter of Richard D. Nye, CPAOn March 6, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions (Order) against Richard D. Nye. The Order finds that Nye, who has held a CPA license and served as Cornerstone Propane Partners, L.P.'s vice president of finance and administration and acting chief financial officer, consented to a Final Judgment in a civil action (SEC v. Baxter, et al., Case No.: C-05-03843-RMW, No. D. Cal.) which was entered on February 22, 2008 permanently restraining him from securities violations, ordering him to pay a civil money penalty and barring him from acting as an officer or director of a public company for three years. Based on the above, the Order suspends Nye from appearing or practicing before the Commission as an accountant, with a right to apply for reinstatement after three years from the date of the order. Richard D. Nye consented to the issuance of the Order without admitting or denying any of the findings in the Order. (Rel. 34-57444); File No. 3-12984) Report of Investigation Concerning the Retirement Systems of AlabamaOn March 6, the Commission issued a Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934 concerning The Retirement Systems of Alabama (RSA). The Report stems from an insider trading inquiry concerning purchases by RSA, a state pension fund, of shares of The Liberty Corporation (Liberty) in August 2005. At the time RSA purchased the Liberty shares, RSA knew about a prospective acquisition of Liberty by Raycom Media, Inc., for a substantial premium over Liberty's market price. RSA learned about the transaction, and had received Liberty's confidential information, because it was to provide Raycom's financing for the acquisition. The value of RSA's Liberty shares increased by more than $700,000 after the acquisition was announced to the public. When it purchased the Liberty shares, RSA had no program, policy, practice, or training to ensure that RSA's investment staff understood and complied with the federal securities laws in general or insider trading laws in particular. Public pension funds are exempt from most of the federal securities laws governing investment companies and money managers. However, public funds are not exempt from important anti-fraud provisions that prohibit, among other things, insider trading. The Commission's report reminds public pension funds of their responsibilities under the federal securities laws, and warns them that they assume a greater risk of running afoul of antifraud and other provisions if they do not have adequate compliance policies and procedures in place to prevent wrongdoing in their money management functions. A copy of the Report is available at http://www.sec.gov/litigation/investreport/34-57446.htm. INVESTMENT COMPANY ACT RELEASESPrudential Annuities Life Assurance Corporation, et al.A notice has been issued giving interested persons until March 31, 2008, to request a hearing on an application filed by Prudential Annuities Life Assurance Corporation (Insurance Company), Prudential Annuities Life Assurance Corporation Variable Account B (Account), and Prudential Annuities Distributors, Inc. (PAD, and collectively with the Insurance Company, and the Accounts, the Applicants). Applicants seek an order amending an existing order under Section 6(c) of the Act, exempting them from Sections 2(a)(32), 22(c) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder, to permit, under specified circumstances, the recapture of certain credits previously applied to purchase payments made under (1) the XTRA Credit Six and Optimum Plus variable annuity contracts issued by the Insurance Company (Contracts), or (2) variable annuity contracts issued by the Insurance Company in the future that are substantially similar in all material respects to the Contracts (Future Contracts). Applicants also request that the order extend to any FINRA member broker-dealer, whether existing or created in the future, that serves as a distributor or principal underwriter of the Contracts offered through the Accounts or any other separate accounts established in the future by the Insurance Company to support Future Contracts. (Rel. IC-28179 - March 4) Pruco Life Insurance Company, et al.A notice has been issued giving interested persons until March 31, 2008, to request a hearing on an application filed by Pruco Life Insurance Company (Pruco Life), Pruco Life Insurance Company of New Jersey (Pruco Life of New Jersey, and collectively with Pruco Life, the Insurance Companies), Pruco Life Flexible Premium Variable Annuity Account (Pruco Life Account), Pruco Life of New Jersey Flexible Premium Variable Annuity Account (Pruco Life of New Jersey Account, and collectively with Pruco Life Account, the Accounts), and Prudential Annuities Distributors, Inc. (PAD, and collectively with the Insurance Companies, and the Accounts, the Applicants). Applicants seek an order amending an existing order under Section 6(c) of the Act, exempting them from Sections 2(a)(32), 22(c) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder, to permit, under specified circumstances, the recapture of certain credits previously applied to purchase payments made under (1) the X Series of the Prudential Premier variable annuity contracts of the Insurance Companies (X Series Contract) or (2) variable annuity contracts issued by the Insurance Companies in the future that are substantially similar in all material respects to the X Series Contract (Future Contracts). Applicants also request that the order extend to any FINRA member broker-dealer controlling, controlled by, or under common control with the Insurance Companies, whether existing or created in the future, that serves as a distributor or principal underwriter of the X Series Contracts offered through the Accounts or any other separate accounts established in the future by the Insurance Companies to support Future Contracts. (Rel. IC-28180 - March 4) Cuna Mutual Insurance Society, et al.A notice has been issued giving interested persons until March 31, 2008, to request a hearing on an application filed by CUNA Mutual Insurance Society (Insurance Company), CUNA Mutual Variable Annuity Account (Account), and CUNA Brokerage Services, Inc. (CUNA Brokerage, and collectively with the Insurance Company, and the Account, the Applicants). Applicants seek an order under Section 6(c) of the Act, exempting them from Sections 2(a)(32) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder, to permit, under specified circumstances, the recapture of certain credits previously applied to purchase payments made under (1) certain flexible premium deferred variable annuity contracts issued by the Insurance Company (Contracts), or (2) variable annuity contracts issued by the Insurance Company in the future that are substantially similar in all material respects to the Contracts (Future Contracts). Applicants also request that the order extend to any Financial Industry Regulatory Authority member broker-dealer that serves in the future as a distributor or principal underwriter of the Contracts or Future Contracts offered through the Accounts or any other separate accounts of the Insurance Company. (Rel. IC-28181 - March 4) Pioneer Bond Fund et al.An order has been issued on an application filed by Pioneer Bond Fund et al. under Section 6(c) of the Investment Company Act of 1940 (Act) for an exemption from Sections 18(f) and 21(b) of the Act, under Section 12(d)(1)(J) of the Act for an exemption from Section 12(d)(1) of the Act, under Sections 6(c) and 17(b) of the Act for an exemption from Sections 17(a)(1) and 17(a)(3) of the Act, and under Section 17(d) of the Act and Rule 17d-1 under the Act to permit certain joint transactions. The order permits certain registered open-end management investment companies to participate in a joint lending and borrowing facility. (Rel. IC-28182 - March 4) JPMorgan Trust I, et al.A notice has been issued giving interested persons until March 31, 2008 to request a hearing on an application filed by JPMorgan Trust I, et al., for an order under Section 6(c) of the Investment Company Act of 1940 (Act) for an exemption from Rule 12d1-2(a) under the Act. The order would permit funds of funds relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-28183 - March 4) RSI Retirement TrustA notice has been issued giving interested persons until March 25, 2008, to request a hearing on an application filed by RSI Retirement Trust for an order under Section 8(f) of the Investment Company Act of 1940 declaring that the applicant has ceased to be an investment company. (Rel. IC-28184 - March 5) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangeA proposed rule change (SR-CBOE-2008-22), as modified by Amendment No. 1 thereto, filed by Chicago Board Options Exchange extending the Dividend, Merger, and Short Stock Interest Strategies Fee Cap Pilot Program 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 March 10. (Rel. 34-57424) A proposed rule change filed by the New York Stock Exchange (SR-NYSE-2008-15) to provide a credit to members for execution of orders sent directly to a floor broker that adds liquidity to the Exchange 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 March 10. (Rel. 34-57433) Approval of Proposed Rule ChangeThe Commission granted approval of a proposed rule change (SR-CBOE-2006-36), as modified by Amendments No. 1, 2, and 3 thereto, submitted by the Chicago Board Options Exchange under Rule 19b-4 of the Securities Exchange Act of 1934 to modify the minimum value size for an opening transaction in a currently-opened FLEX Equity series and to establish a pilot program that reduces the minimum number of contracts required for a FLEX Equity Option opening transaction in a new series. Publication is expected in the Federal Register during the week of March 10. (Rel. 34-57429) Accelerated Approval of Proposed Rule ChangeThe Commission, under Section 19(b)(2) of the Securities Exchange Act of 1934, granted accelerated approval of a proposed rule change (SR-NASDAQ-2008-012) filed by The NASDAQ Stock Market to trade shares of the GreenHaven Continuous Commodity Fund pursuant to the unlisted trading privileges. Publication of the proposal is expected in the Federal Register during the week of March 10. (Rel. 34-57430) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2008/dig030608.htm
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