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COMMISSION ANNOUNCEMENTSOffice of the Chief Accountant Selects Four Professional Accounting FellowsThe Securities and Exchange Commission's Office of the Chief Accountant (OCA) has selected four professional accounting fellows for two-year terms beginning in 2009.
The four will join the current professional accounting fellows - Douglas K. Besch, Brian W. Fields, Douglas T. Parker, Allison M. Patti, Evan B. Sussholz, and Arie S. Wilgenburg. Outgoing professional accounting fellows are Adam Brown, Muneera Carr, Jeffrey E. Ellis, Robert G. Fox III, and Liza McAndrew Moberg. While at the SEC, 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 am looking forward to working with this highly skilled group of professionals as we address the many challenging issues in the current economic environment. I am confident that their skill and expertise will benefit OCA, the Commission, and investors. I would also like to thank the outgoing professional accounting fellows for their hard work and dedication and I wish them the very best and continued success in their careers," said Jim Kroeker, Acting SEC Chief Accountant. (Press Rel. 2009-95) Report On Administrative ProceedingsThe Report on Administrative Proceedings for the Period Oct. 1, 2008 through March 31, 2009 has been issued, giving summary statistical information on the Commission's administrative proceedings caseload. The report is published in the SEC Docket and appears on the Commission's website. (Rel. 34-59837) RULES AND RELATED MATTERSDelegation of Authority to the General CounselThe Commission is amending its rules to delegate to the General Counsel the authority to designate officers in authorized investigations conducted by the Office of General Counsel. The Office of the General Counsel of the Commission has authority to conduct authorized investigations under Section 21 of the Securities Exchange Act of 1934 (15 U.S.C. 78u) of possible violations by attorneys of the Commission Rules of Practice. In connection with these investigations, it may be necessary from time to time to amend the formal orders to add or remove officers designated to conduct the inquiry. This delegation will spare the Commissioners and their staffs from having to review matters in which the Commission has already issued an order and which implicate no policy issues. (Rel. 34-59829) ENFORCEMENT PROCEEDINGSIn the Matter of Royal Alliance Associates, Inc.The United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting Administrative Proceedings, Making Findings, and Imposing Remedial Sanctions Pursuant to Section 15(b)(4) of the Securities Exchange Act of 1934 (Order). The Order finds that Royal Alliance Associates, Inc. (Royal Alliance) failed reasonably to supervise David L. McMillan (McMillan) with a view to preventing and detecting his violations of the federal securities laws during the period January 1999-December 2004. During this time period, McMillan operated a Ponzi scheme and defrauded at least 28 investors, who lost about $3 million. Royal Alliance failed to establish and implement systems and procedures that would reasonably be expected to prevent and detect McMillan's violations, including failing to develop a reasonable system to implement its procedures for conducting exams in satellite offices, having inadequate exam procedures to address red flags relevant to satellite offices, and failing to develop a system to implement its procedure requiring maintenance of complete and accurate customer transaction reports. Based on the above, the Order censures Royal Alliance, and orders it to pay disgorgement of $1 and a civil money penalty of $500,000. Royal Alliance consented to the issuance of the Order without admitting or denying the findings of the Order, except as to the Commission's jurisdiction over it. (Rel. 34-59830; File No. 3-13456) In the Matter of Brad E. ParishThe United States Securities and Exchange Commission (Commission) announced the issuance of an Order Instituting Administrative Proceedings, Making Findings, and Imposing Remedial Sanctions Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 (Order). The Order finds that Brad E. Parish (Parish) failed reasonably to supervise David L. McMillan (McMillan) with a view to preventing and detecting his violations of the federal securities laws during the period January 1999-December 2004. During at least this time period, McMillan operated a Ponzi scheme and defrauded at least 28 investors, who lost approximately $3 million. Parish failed to follow written supervisory procedures relating to exams of McMillan's office, including failing to review McMillan's business bank account during certain periods, and he failed to follow up on several red flags, including McMillan's sharply declining commissions, a suspicious annuity transaction, and evidence of undisclosed outside business activities. Based on the above, the Order bars Parish from association with any broker or dealer in a supervisory capacity with the right to reapply for association in such capacity after one year, and orders him to pay disgorgement of $1 and a civil money penalty of $30,000. Parish consented to the issuance of the Order without admitting or denying the findings of the Order, except as to the Commission's jurisdiction over him. (Rel. 34-59831; File No. 3-13457) In the Matter of IAC Holdings, Inc.On April 28, an Administrative Law Judge issued an Order Making Findings and Revoking Registrations by Default (Default Order) in the matter of IAC Holdings, Inc., Administrative Proceeding No. 3-13431. The Order Instituting Proceedings alleged that IAC Holdings, Inc., failed repeatedly to file required reports while its securities were registered with the Securities and Exchange Commission. The Default Order finds the allegations to be true as to the Respondent. It revokes the registration of each class of registered securities of IAC Holdings, Inc., pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-59833; File No. 3-13431) In the Matter of Michael D. SmithOn April 29, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (Order) against Michael D. Smith. The Order finds that, on March 24, 2009, a judgment was entered against Smith permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder in the civil action entitled Securities and Exchange Commission v. Capital Holdings, L.L.C., et al., Civil Action No. 03-RB-0923, in the United States District Court for the District of Colorado. The Commission's complaint alleged, among other things, that Capital Holdings, LLC and other entities and individuals, including Smith, defrauded investors by falsely promising that: (1) investor funds would be used as collateral to facilitate leveraged trading of financial instruments issued by major banks and governments and that investors would share in the trading profits; (2) investors would earn a fixed monthly return ranging from 2% to 15%; (3) the safety of invested principal would be guaranteed; and (4) investors' funds would be fully insured. The Complaint also alleged that there was no such trading program and that the defendants regularly paid undisclosed sales commissions, Ponzi payments and personal expenses with investor funds. Based on the above, the Order bars Smith from association with any broker or dealer. Smith consented to the issuance of the Order without admitting or denying any of the findings in the Order. (Rel. 34-59840; File No. 3-13458) INVESTMENT COMPANY ACT RELEASESPhoenix Life Insurance Company, et al.An order has been issued on an application filed by Phoenix Life Insurance Company, et al. under Section 12(d)(1)(J) of the Investment Company Act for an exemption from Sections 12(d)(1)(A) and (B) of the Act and under Sections 6(c) and 17(b) of the Act for an exemption from Section 17(a) of the Act. The order amends and supersedes a prior order that permits certain registered open-end management investment companies to acquire shares of other registered open-end management investment companies and unit investment trusts both within and outside the same group of investment companies. The amended order subjects applicants to different conditions than the prior order and deletes a condition of the prior order. (Rel. IC-28714 - April 28) First American Strategy Funds, Inc., et al.An order has been issued on an application filed by First American Strategy Funds, Inc., 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 funds of funds relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-28715 - April 28) Bridgeway Capital Management, Inc.An order has been issued on an application filed by Bridgeway Capital Management, Inc. (Bridgeway) under Section 2(a)(9) of the Investment Company Act. The order declares that Leonora R. Montgomery does not control Bridgeway. (Rel. IC-28716 - April 28) SELF-REGULATORY ORGANIZATIONSImmediate Effectiveness of Proposed Rule ChangesA proposed rule change (SR-ISE-2009-19) submitted pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder by the International Securities Exchange to amend rules related to confirmations to customers 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 April 27. (Rel. 34-59806) A proposed rule change filed by the NASDAQ Stock Market (SR-NASDAQ-2009-034) modifying Rule 7050 governing pricing for The NASDAQ Options Market 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 April 27. (Rel. 34-59822) A proposed rule change (SR-NYSE-2009-40) filed by the New York Stock Exchange amending the Exchange's timely alert policy 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 April 27. (Rel. 34-59823) Approval of Proposed Rule ChangesThe Commission approved a proposed rule change (SR-DTC-2009-05) submitted under Rule 19b-4 by the Depository Trust Company that expands the scope and timing that DTC can collect and pass-through fees owed by participants to American Depositary Receipt agents. Publication is expected in the Federal Register during the week of April 27. (Rel. 34-59821) The Commission approved a proposed rule change by the Chicago Board Options Exchange (SR-CBOE-2009-018) to establish permanently the Short Term Option Series Pilot Program. Publication is expected in the Federal Register during the week of April 27. (Rel. 34-59824) Accelerated Approval of Proposed Rule ChangeThe Commission granted accelerated approval of a proposed rule change submitted by NYSE Arca (SR-NYSEArca-2009-22), through its wholly owned subsidiary, NYSE Arca Equities, Inc., to list and trade shares of the Grail American Beacon Large Cap Value ETF. Publication is expected in the Federal Register during the week of April 27. (Rel. 34-59826) ADDITIONS AND CORRECTIONSDuplicated Issue No.The issue numbers were inaccurate for the Digest published on Monday, April 27, 2009, and Tuesday, April 28, 2009. They should have been 2009-79 on April 27, 2009, and 2009-80 on April 28, 2009. Sentence OmittedThe following sentence was omitted from a summary entitled "Notices of Deregistration under the Investment Company Act", which appeared in the April 27th issue of the Digest. For the month of April 2009, a notice has been issued giving interested persons until May 19, 2009, to request a hearing on any of the following applications for an order under Section 8(f) of the Investment Company Act declaring that the applicant has ceased to be an investment company.
(Rel. IC-28713) SECURITIES ACT REGISTRATIONSRECENT 8K FILINGS
http://www.sec.gov/news/digest/2009/dig042909.htm
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