SEC NEWS DIGEST Issue 2006-187 September 27, 2006 COMMISSION ANNOUNCEMENTS SEC SUSPENDS TRADING IN GEOGRAPHICS, INC. AND WINDOW ROCK CAPITAL CORP. FOR FAILURE TO MAKE REQUIRED PERIODIC FILINGS The U.S. Securities and Exchange Commission announced the temporary suspension of trading of the securities of the following issuer, commencing at 9:30 a.m. EDT on Sept. 27, 2006, and terminating at 11:59 p.m. EDT on Oct. 10, 2006: Geographics, Inc. (n/k/a G Printing, Inc.) (GGIT) Window Rock Capital Corp. (n/k/a Window Rock Capital Holdings, Inc.) (WRKC) The Commission temporarily suspended trading in the securities of GGIT and WRKC due to a lack of current and accurate information about the companies because they had not filed periodic reports with the Commission for several years. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act) Section 12(k) The Commission cautions brokers, dealers, shareholders and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by this company. Brokers and dealers should be alert to the fact that, pursuant to Exchange Act Rule 15c2-11, at the termination of the trading suspensions, no quotation may be entered relating to the securities of the subject company unless and until the broker or dealer has strictly complied with all of the provisions of the rule. If any broker or dealer is uncertain as to what is required by the rule, it should refrain from entering quotations relating to the securities of this company that has been subject to a trading suspension until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. Any broker or dealer with questions regarding the rule should contact the staff of the Securities and Exchange Commission in Washington, DC at (202) 551-5720. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action. If any broker, dealer or other person has any information which may relate to this matter, they should immediately communicate it to the Delinquent Filings Branch of the Division of Enforcement at (202) 551- 5466, or by e-mail at DelinquentFilings@sec.gov. (Rel. 34-54517) SEC CHAIRMAN, EURONEXT REGULATORS MEET TO DISCUSS COOPERATION IN THE EVENT OF THE NYSE EURONEXT COMBINATION U.S. Securities and Exchange Commission Chairman Christopher Cox and the Chairman's Committee of the Euronext regulators met in Lisbon Tuesday in light of a potential combination between the NYSE Group, Inc. and Euronext N.V. into NYSE Euronext. They discussed the development of a possible framework for consultation and mutual cooperation in the interest of meeting their respective regulatory mandates in the areas of investor protection, orderly functioning and integrity of the markets. The regulators also affirmed that joint ownership or affiliation of markets alone would not lead to regulation from one jurisdiction becoming applicable in the other and stated their shared belief in the importance of local regulation of local markets. "The United States is committed to close cooperation and collaboration with our partners in other nations as securities markets and financial services expand globally," Chairman Cox said. "These meetings have gone far in focusing our joint efforts to promote healthy and increasingly efficient capital markets for the benefit of investors." On June 1, 2006, the NYSE Group and Euronext NV announced the signing of a combination agreement in order to create a new group, NYSE Euronext Inc. The holding company is proposed to be incorporated in the United States, the shares of which would be listed on NYSE and on Euronext Paris. The proposed combination is subject to prior authorizations by the respective Euronext Regulators and, in some cases, the Ministers of Finance, on the European side and by the SEC in the United States. Regulators are not taking a position on the proposed combination. They recognize that shareholders will ultimately decide on whether the proposed combination will go forward. Therefore, the framework for regulatory cooperation would come into effect once shareholders and relevant authorities have given their final decisions. Regulators are conscious that markets are globalizing, to the potential benefit of investors everywhere, making increased international cooperation of regulators essential. The Chairman's Committee of the Euronext regulators was represented by: Commissioner Paul Koster, Authority for the Financial Markets (AFM), Netherlands; Chairman Michel Prada, Autorité des Marchés Financiers (AMF), France; Chairman Eddy Wymeersch, Commission Bancaire et Financière et des Assurances (CBFA), Belgium; " Chairman Carlos Tavares, Comissão do Mercado de Valores Mobiliários (CMVM), Portugal; and Director of Markets Division Sally Dewar, Financial Services Authority (FSA), United Kingdom. (Press Rel. 2006165) COMMISSION ANNOUNCES SPEAKERS, PANELISTS, AND AGENDA FOR OCTOBER 3 INTERACTIVE DATA ROUNDTABLE PepsiCo CEO Indra Nooyi to Deliver Opening Address The Securities and Exchange Commission announced today the speakers, panelists, and final agenda for its upcoming public roundtable on ways that interactive data can improve disclosure for ordinary investors. The Interactive Data Roundtable will take place on Oct. 3, 2006, from 3:00 to 5:00 p.m., e.d.t., at the Commission's headquarters in Washington, D.C. The roundtable will begin at 3:00 p.m. with brief remarks by Chairman Christopher Cox and then an opening address by Indra Nooyi, Chief Executive Officer of PepsiCo, Inc. PepsiCo is among the companies voluntarily submitting their financial reports at the SEC in the interactive data format. The focus of this event will be on new software using interactive data to provide investor-friendly research tools. Presenters will demonstrate emerging software tools and panelists will discuss how interactive data-enabled software can assist investors. Panelists will also talk about ways to accelerate the development of new software for investors in light of the SEC's recent announcement of several procurements to speed the advent of interactive data available via the Commission's website, sec.gov. The panelists and speakers will also include: o Terry Savage (Chicago Sun-Times), Moderator o Alfred Berkeley (Pipeline Trading Systems LLC) o Robert Blake (Rivet Software, Inc.) o Timothy Bray (Sun Microsystems, Inc.) o Martijn Cremers (Yale School of Management) o William M. Diefenderfer III (enumerate Solutions,Inc.) o Darren Duffy (Lipper Inc.) o Frank Hodge (University of Washington) The roundtable will be held in the Auditorium at the Commission's headquarters at 100 F Street, N.E., Washington, D.C., and will be open to the public with seating on a first-come, first-served basis. Doors will open at 1:00 p.m. Visitors will be subject to security checks. Materials related to the roundtable, including the day's agenda, are accessible at http://www.sec.gov/spotlight/xbrl.htm. Real time and archived audio and video webcasts will be accessible at http://www.sec.gov. The Commission welcomes feedback on any aspect of the use of interactive data. The information that is submitted will become part of the public record of the roundtable. Submissions to the Commission may be provided by any of the following methods: Electronic submissions: Use the Commission's Internet submission form at www.sec.gov/news/press.shtml; or Send an e-mail to rule-comments@sec.gov. Please include File Number 4- 515 on the subject line. Paper submissions: Send paper submissions in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. All submissions should refer to File Number 4-515. This file number should be included on the subject line if e-mail is used. To help process and review your submissions more efficiently, please use only one method. The Commission will post all submissions on the Commission's Internet Web site at http://www.sec.gov/news/press/4- 515.shtml. Please note that all submissions received will be posted without change. The SEC does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. (Press Rel. 2006-166) ENFORCEMENT PROCEEDINGS IN THE MATTER OF CONRAD SEGHERS On September 26, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940 and Notice of Hearing against Conrad P. Seghers. The Division of Enforcement alleges that on September 14, 2006, respondent was permanently enjoined from future violations of the antifraud provisions of the federal securities laws in SEC v. Conrad P. Seghers, Civil Action No. 3:04-CV-1320-K (N.D. Texas). In these proceedings, instituted pursuant to Section 203(f) of the Investment Advisers Act, a hearing will be scheduled before an Administrative Law Judge. At that hearing, the judge will hear evidence from the Division and Seghers to determine whether the allegations contained in the Order are true. The judge will then determine what, if any, remedial action is appropriate in the public interest against Seghers pursuant to Section 203(f) of the Advisers Act. The Commission has ordered that the administrative law judge issue an initial decision within 210 days from the service of the order instituting proceedings. (Rel. IA-2555; File No. 3-12433) IN THE MATTER OF JAMES DEMATTEO On September 26, 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(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 (Order) against James A. DeMatteo (DeMatteo), age 46, of Staten Island, New York. DeMatteo was the president and part owner of Cornerstone Equity Advisors, Inc. (Cornerstone), an investment adviser registered with the Commission from October 1998 until March 2002. The proceeding arises from DeMatteo's participation in a scheme to defraud Cornerstone's advisory client, the Cornerstone Funds (the Funds), a family of mutual funds registered with the Commission. The Order finds that from November 2001 through February 2002 DeMatteo participated in a fraudulent billing scheme that caused Cornerstone to misappropriate $126,741 from the Funds. Along with another associated person of Cornerstone, DeMatteo doctored invoices submitted to the Funds' by certain service providers to request payments in excess of the amounts actually due. They then instructed the Funds' administrator to pay a related entity rather than pay the providers directly. When the inflated payments reached the bank account of the related entity, DeMatteo, who controlled the account, paid the service providers the actual amounts invoiced. DeMatteo used the excess amount billed to the Funds to pay salaries, which were increased during the three month period, and other expenses including office rent, health insurance, car service, meals and credit cards. Based on the above, the Order finds that DeMatteo willfully aided and abetted and caused Cornerstone to violate Sections 206(1) and 206(2) of the Advisers Act and willfully violated Section 37 of the Investment Company Act and imposes a cease-and-desist order against him. The Order bars DeMatteo from association with any investment adviser, and prohibits him from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter. The Order also requires DeMatteo to pay disgorgement of $111,741 plus prejudgment interest, but payment of such amount is waived and a penalty is not being imposed based upon DeMatteo's sworn financial statement and other documents submitted to the Commission. DeMatteo consented to the issuance of the Order without admitting or denying any of the Commission's findings. (Rels. IA-2556; IC-27502; File No. 3-12434) IN THE MATTER OF U.S. GAS & ELECTRIC, INC. On September 26, the Commission issued an Order Instituting Proceedings, Making Findings, and Revoking Registration of Securities Pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Order) against U.S. Gas & Electric, Inc. The Order finds that U.S. Gas & Electric, Inc. failed to file numerous annual and quarterly reports which were required to be filed by Section 13(a) of the Exchange Act of 1934 and by Rules 13a-1 and 13a-13 thereunder. Based on the above, the Order deregistered U.S. Gas & Electric's securities, which had been registered under Section 12(g) of the Exchange Act of 1934. U.S. Gas & Electric, Inc. consented to the issuance of the Order without admitting or denying any of the findings in the Order. (Rel. 34-54516; File No. 3-12435) IN THE MATTER OF BRENDAN MURRAY On September 26, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings 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 (Order) against Brendan E. Murray (Murray). The Order alleges that Murray, age 44, of Island Park, New York, was the managing director of Cornerstone Equity Advisors, Inc. (Cornerstone), an investment adviser registered with the Commission from October 1998 until March 2002. According to the Order, from November 2001 through February 2002 Murray participated in a scheme to defraud Cornerstone's advisory client, the Cornerstone Funds (the Funds), a family of mutual funds registered with the Commission. Along with another associated person of Cornerstone, Murray doctored invoices submitted to the Funds' by certain service providers to request payments in excess of the amounts actually due. They then instructed the Funds' administrator to pay a related entity rather than pay the providers directly. When the inflated payments reached the bank account of the related entity, the service providers were paid the actual amounts invoiced, and the excess amounts were used to pay salaries, which were increased during the three month period, and other expenses including office rent, health insurance, car service, meals and credit cards. Finally, the Order alleges that the fraudulent billing scheme led to the misappropriation of $126,741 of Fund assets. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Murray with an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions are appropriate in the public interest. The Order requires Murray to file an answer to the allegations contained in the Order within 20 days after service of the Order, pursuant to Rule 220 of the Commission's Rules of Practice and the Administrative Law Judge to issue an initial decision no later than 300 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice. (Rels. IA-2557; IC- 27503; File No. 3-12436) IN THE MATTER OF DARIN ROBERTS On September 26, the Commission issued an Order Making Findings and Imposing Remedial Sanctions (Order) Pursuant to Section 15(b)(6) of the Securities and Exchange Act of 1934 against Darin W. Roberts (Roberts). The Order finds that on June 30, 2006, the United States District Court for the Southern District of Indiana in the civil action entitled SEC v. Patrick Ballinger, et al., Civil Action Number 1:03-CV-1659, entered a permanent injunction against Roberts which enjoined Roberts, with his consent, from future violations of the registration and antifraud provisions of the federal securities laws. Based on the above, the Order bars Roberts from association with any broker or dealer. Roberts consented to the issuance of the Order without admitting or denying any of the findings in the order. (Rel. 34-54515; File No. 3-12378) COMMISSION ORDERS HEARINGS ON REGISTRATION REVOCATION AGAINST THREE DELINQUENT COMPANIES FOR FAILURE TO MAKE REQUIRED PERIODIC FILINGS On September 27, in conjunction with the trading suspension, the Commission also 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 three companies for failure to make required periodic filings with the Commission: Geographics, Inc. (n/k/a G Printing, Inc.) (GGIT) Pembroke Capital, Inc. (PBKP) Window Rock Capital Corp. (n/k/a Window Rock Capital Holdings, Inc.) (WRKC) In this Order, the Division of Enforcement (Division) alleges that the three 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 in the alternative, 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. 34-54518; File No. 3-12437) COMMISSION ORDERS HEARINGS ON REGISTRATION REVOCATION AGAINST SECURITIES OF FIVE DELINQUENT PINK SHEET COMPANIES FOR FAILURE TO MAKE REQUIRED PERIODIC FILINGS Commission Institutes Follow-Up Proceedings to August 28, 2006 Trading Suspensions The Commission today instituted two separate public administrative proceedings to determine whether to revoke or suspend the registration of each class of the securities of five companies for failure to make required periodic filings with the Commission. These proceedings represent follow-up action to the trading suspension orders issued by the Commission on Aug. 28, 2006 as to the securities of all five companies. In this matter, the Division of Enforcement alleges that China Continental, Inc. and Xcelera, Inc. are delinquent in their required periodic filings with the Commission. The Division of Enforcement also alleges that the common stock of both of these issuers was quoted on the Pink Sheets as of Aug. 21, 2006. In the Matter of Cycomm International, Inc., H. Quotient, Inc., and Management Technologies, Inc,. Administrative Proceeding File No. 3- 12439 In this matter, the Division of Enforcement alleges that Cycomm International, Inc., H. Quotient, Inc., and Management Technologies, Inc. are delinquent in their required periodic filings with the Commission. The Division of Enforcement also alleges that the common stock of each of these issuers was quoted on the Pink Sheets as of Aug. 21, 2006. In each of these proceedings, instituted pursuant to Securities Exchange Act of 1934 (Exchange Act) Section 12(j), a hearing will be scheduled before an Administrative Law Judge. At each 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 each proceeding will then determine whether the registrations pursuant to Exchange Act Section 12 of the securities of the respondents in the respective orders should be revoked, or in the alternative, suspended for a period not exceeding twelve months. The Commission ordered that the Administrative Law Judge in each proceeding issue an initial decision not later than 120 days from the date of service of the order instituting proceedings. See also the Order Instituting Administrative Proceedings, In the Matter of Paystar Corp., et al., Administrative Proceeding File No. 3- 12399 See also the Order Instituting Administrative Proceedings, In the Matter of China Continental, Inc., et al., Administrative Proceeding File No. 3-12438 See also the Order Instituting Administrative Proceedings, In the Matter of Cycomm International, Inc., et al., Administrative Proceeding File No. 3-12439 See also Order of Suspension of Trading, In the Matter of Amanda Company, Inc., et al., Exchange Act Release No. 54369 (Rel. 34-54523) IN THE MATTER OF VESTIN CAPITAL, INC., VESTIN MORTGAGE INC., AND MICHAEL SHUSTEK On September 27, the Commission instituted administrative and cease- and-desist proceedings against Vestin Capital, Inc. (Vestin Capital), Vestin Mortgage, Inc. (Vestin Mortgage), and Michael V. Shustek (Shustek). Vestin Capital, a registered broker-dealer, and Vestin Mortgage are both headquartered in Las Vegas, Nevada. Shustek, age 47, of Las Vegas, during the relevant period, was the owner and controlling person of Vestin Capital and Vestin Mortgage. The Order finds that, from July 2002 through August 2003 and from November 2003 through November 2004, Shustek, Vestin Capital, and Vestin Mortgage offered and sold units in two mortgage funds managed by Shustek and Vestin Mortgage. They sold units in the funds through sales seminars at which they provided prospective investors with information regarding the funds. The information provided to prospective investors included the prior performance of one of the funds being offered and of another related mortgage fund. The information, however, materially overstated the funds' prior performance. The Commission simultaneously accepted Shustek, Vestin Capital and Vestin Mortgage's Offer of Settlement wherein, without admitting or denying the Commission's findings: (1) Shustek, Vestin Capital, and Vestin Mortgage agreed to cease and desist from violating Sections 17(a)(2) and (3) of the Securities Act of 1933; (2) Shustek agreed to pay a civil penalty of $100,000; (3) Shustek agreed to be suspended from association with any broker or dealer for a period of six months; and (4) Shustek, Vestin Capital, and Vestin Mortgage agreed to comply with certain undertakings, including the retention of an independent consultant to monitor Vestin's Capital's sales materials and the development and implementation of procedures by Vestin Mortgage to ensure complete and accurate information is provided to investors regarding past performance. [In the Matter of Vestin Capital, Inc., Vestin Mortgage, Inc. and Michael V. Shustek. (Rels. 33-8744; 34- 54524; File No. 3-12440) SEC CHARGES THREE INDIVIDUALS IN ACCOUNTING FRAUD CASE On September 27, the Commission filed an accounting fraud case against James N. Stanard and Martin J. Merritt, the former CEO and former controller, respectively, of RenaissanceRe Holdings Ltd. (RenRe) and also against Michael W. Cash, a former senior executive of RenRe's wholly-owned subsidiary, Renaissance Reinsurance Ltd. The complaint, filed today in federal court in Manhattan, alleges that Stanard, Merritt, and Cash structured and executed a sham transaction that had no economic substance and no purpose other than to smooth and defer over $26 million of RenRe's earnings from 2001 to 2002 and 2003. In partial settlement of the Commission's claims, without admitting or denying the allegations, Merritt consented to the entry of an anti- fraud injunction and other relief. The Commission's complaint alleges: Stanard, Merritt and Cash committed fraud in connection with a sham transaction that they concocted to smooth RenRe's earnings. The complaint concerns two seemingly separate, unrelated contracts that were, in fact, intertwined. Together, the contracts created a round trip of cash. In the first contract, RenRe purported to assign at a discount $50 million of recoverables due to RenRe under certain industry loss warranty contracts to Inter-Ocean Reinsurance Company, Ltd. in exchange for $30 million in cash, for a net transfer to Inter- Ocean of $20 million. RenRe recorded income of $30 million upon executing the assignment agreement. The remaining $20 million of its $50 million assignment became part of a "bank" or "cookie jar" that RenRe used in later periods to bolster income. The second contract was a purported reinsurance agreement with Inter-Ocean that was, in fact, a vehicle to refund to RenRe the $20 million transferred under the assignment agreement plus the purported insurance premium paid under the reinsurance agreement. This reinsurance agreement was a complete sham. Not only was RenRe certain to meet the conditions for coverage; it also would receive back all of the money paid to Inter-Ocean under the agreements plus investment income earned on the money in the interim, less transactional fees and costs. RenRe accounted for the sham transaction as if it involved a real reinsurance contract that transferred risk from RenRe to Inter-Ocean when in fact, the complaint alleges, each of these individuals knew that this was not true. Merritt and Stanard also misrepresented or omitted certain key facts about the transaction to RenRe's auditors. As a result of RenRe's accounting treatment for this transaction, RenRe materially understated income in 2001 and materially overstated income in 2002, at which time it made a "claim" under the "reinsurance" agreement. It then received as apparent reinsurance proceeds the funds it had paid to Inter-Ocean and that Inter-Ocean held in a trust for RenRe's benefit. On Feb. 22, 2005, RenRe issued a press release announcing that it would restate its financial statements for the years ended Dec. 31, 2001, 2002 and 2003. On March 31, 2005, RenRe filed its Form 10-K for the year ended Dec. 31, 2004, which contained restated financial statements for those years. Stanard signed and certified the 2004 Form 10-K. Both the press release and the Form 10-K attributed the restatement of the Inter-Ocean transaction to accounting "errors" due to "the timing of the recognition of Inter-Ocean reinsurance recoverables." These statements were misleading. In fact, the transaction contained no real reinsurance and the company's restated financial statements accounted for the transaction as if it had never occurred. In short, the entire transaction was a sham, and the company failed to disclose that fact and misrepresented the reasons for the restatement. The complaint charges Stanard, Merritt and Cash with securities fraud in violation of Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5(a), (b) and (c) of the Exchange Act; with violating the reporting, books-and-records and internal control provisions of Exchange Act Section 13(b)(5) and Rule 13b2-1; and with aiding and abetting RenRe's violations of Exchange Act Sections 10(b), 13(a) and 13(b)(2) and Exchange Act Rules 10b-5(a), (b) and (c), 12b- 20, 13a-1 and 13a-13. In addition, the complaint charges Stanard and Merritt with violating Exchange Act Rule 13b2-2 for making materially false statements to RenRe's auditors and charges Stanard with violating Exchange Act Rule 13a-14 for certifying financial statements filed with the Commission that he knew contained materially false and misleading information. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains, if any, plus prejudgment interest, civil money penalties, and orders barring each defendant from acting as an officer or director of any public company. Merritt agreed to partially settle the Commission's claims against him. In addition to undertaking to cooperate fully with the Commission, and without admitting or denying the allegations in the complaint, Merritt consented to a partial final judgment that, upon entry by the court, will permanently enjoin him from violating or aiding or abetting future violations of the securities laws, bar him from serving as an officer or director of a public company, and defer the determination of civil penalties and disgorgement to a later date. Merritt also agreed to a Commission administrative order, based on the injunction, barring him from appearing or practicing before the Commission as an accountant, under Rule 102(e) of the Commission's Rules of Practice. Merritt was a certified public accountant licensed to practice in Massachusetts. [SEC v. James N. Stanard, Martin J. Merritt and Michael W. Cash, SDNY, Civ. 06 CV 7736 (GEL)] (LR-19847; AAE Rel. 2484; Press Rel. 2006-164) COMMISSION FILES EMERGENCY ACTION SEEKING TO HALT THE OPERATION OF THE INTERNET PYRAMID SCHEME KNOWN AS PROSPERITY AUTOMATED SYSTEM The Commission announced today that it has filed a Complaint and Application for Emergency Relief in the United States District Court for the Northern District of Georgia to halt an ongoing pyramid-scheme fraud by William M. Osterhout (Osterhout) of Citrus Heights, California and his company Prosperity Network, Inc. (PNI), also located in Citrus Heights, California. In the Complaint, the Commission charges that, since at least July 2005, Osterhout and PNI, an entity he controls, have conducted an unregistered and fraudulent offering of securities through the sale of membership interests in the so-called Prosperity Automated System (PAS) - a supposed web-based "marketing portal" that Osterhout and PNI have claimed to investors will generate "substantial passive income" with "[n]o prospecting," "[n]o advertising," and "[n]o selling." In fact, PAS is nothing more than a fraudulent pyramid-scheme that is destined to collapse and leave the vast majority of investors with substantial losses. The Complaint alleges that the defendants, using a series of approximately 25,000 interconnected PAS websites, have sold more than $15 million in PAS memberships to more than 5,000 individual investors. The Complaint further alleges that in order to purchase a PAS membership, prospective investors submit their personal information into an existing PAS website and agree to be contacted by a PAS team leader, who then directly solicits the investor. Investors who choose to purchase PAS memberships receive the following: (1) their own unique replicated PAS website that automatically offers PAS memberships to additional prospective investors; and (2) the services of PAS team leaders to solicit new prospective investors. The proceeds from an investor's first sale of a PAS membership must be paid to an earlier investor; thereafter, PAS investors retain commissions for each subsequent sale of PAS memberships to new investors while directing part of the sales proceeds to PNI. Although PAS can purportedly be used to market goods and services in addition to PAS memberships, PAS is designed to generate returns for existing investors based almost entirely upon the sales of new PAS memberships to downline investors. As there are a finite number of prospective investors who could ultimately choose to invest in PAS by purchasing a membership, PAS is a pyramid-scheme that will collapse when there are no further investors, leaving the majority of downline investors with losses. The Complaint also alleges that Osterhout and PNI's conduct violated Sections 5 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. In the Complaint and Application for Emergency Relief, the Commission seeks a temporary restraining order, preliminary and permanent injunctions, an accounting, asset freeze, disgorgement of ill-gotten gains, prejudgment interest and civil penalties against Osterhout and PNI. The litigation remains pending as to all parties. [SEC v. William M. Osterhout and Prosperity Network, Inc. d/b/a Prosperity Automated System, Civil Action No 1:06-CV-2318 (N.D. Ga.)] (LR-19848) ADDITIONS AND CORRECTIONS SEC ISSUES CORRECTED ORDER OF SUSPENSION OF TRADING IN THE SECURITIES OF CHINA ENERGY SAVINGS TECHNOLOGY, INC. The Commission today issued a corrected order of trading suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the Exchange Act), of trading in the securities of China Energy Savings Technology, Inc. (China Energy), a Nevada corporation headquartered in Hong Kong. The corrected order of suspension commenced at 9:30 a.m. EDT on Sept. 26, 2006, and will terminate at 11:59 p.m. EDT on Oct. 9, 2006. (Rel. 34-54503A) INVESTMENT COMPANY ACT RELEASES DEUTSCHE INVESTMENT MANAGEMENT AMERICAS, INC., ET AL. The Commission has issued an order to Deutsche Investment Americas, Inc., et al., under Section 9(c) of the Investment Company Act exempting applicants from Section 9(a) of the Act, with respect to a securities-related injunction entered into on Sept. 24, 2004. (Rel. IC-27496 - September 25) 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 100 F Street, N.E., Washington, D.C. 20549-1090 or at the following e-mail box address: . In most cases, this information is also available on the Commission's website: . S-1 AMERISAFE INC, 2301 HIGHWAY 190 WEST, DERIDDER, LA, 70634, 337-463-9052 - 7,856,805 ($77,153,825.00) Equity, (File 333-137583 - Sep. 26) (BR. 01) S-8 Himax Technologies, Inc., 10TH FLOOR, NO. 605, CHUNGSHAN ROAD, HSINHUA, TAINAN COUNTY 712, TAIWAN, F5, -, 866 (6) 505-0880 - 16,752,312 ($117,266,184.00) Equity, (File 333-137585 - Sep. 26) (BR. 10) S-1 BPZ ENERGY INC, 580 WESTLAKE PARK BLVD., SUITE 525, HOUSTON, TX, 77079, 2815566200 - 0 ($36,791,469.00) Equity, (File 333-137586 - Sep. 26) (BR. 04A) S-1 CVR ENERGY INC, 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND, TX, 77479, (281) 207-7711 - 0 ($300,000,000.00) Equity, (File 333-137588 - Sep. 26) (BR. 04) S-8 Security Capital Assurance Ltd, ONE BERMUDIANA ROAD, HAMILTON, D0, HM 11, 441-292-8515 - 3,848,182 ($89,989,736.00) Equity, (File 333-137589 - Sep. 26) (BR. 01B) S-8 PHOENIX TECHNOLOGIES LTD, 915 MURPHY RANCH ROAD, MILPITAS, CA, 95035, (408) 570-1000 - 1,000,000 ($4,984,000.00) Equity, (File 333-137592 - Sep. 26) (BR. 03B) S-8 MGP INGREDIENTS INC, 1300 MAIN ST, ATCHISON, KS, 66002, 9133671480 - 0 ($1,788,750.00) Equity, (File 333-137593 - Sep. 26) (BR. 04B) S-8 Intersearch Group Inc, 222 KEARNY ST STE 550, SAN FRANCISCO, CA, 94108, 415-901-0410 - 0 ($6,288,297.45) Equity, (File 333-137594 - Sep. 26) (BR. 03B) SB-2 PET EXPRESS SUPPLY INC, 5219 S PITTSBURG, SPOKANE, WA, 99223, 509-443-2711 - 1,405,000 ($144,000.00) Equity, (File 333-137595 - Sep. 26) (BR. ) S-3 OSCIENT PHARMACEUTICALS CORP, 1000 WINTER STREET, SUITE 2200, WALTHAM, MA, 02451, 7813982300 - 0 ($100,000,000.00) Equity, (File 333-137596 - Sep. 26) (BR. 01B) F-3ASR NORDIC AMERICAN TANKER SHIPPING LTD, THISTLE HOUSE, 4, BURNABY STREET, HAMILTON HM 11, D0, 00000, (441) 292-7202 - 0 ($0.00) Unallocated (Universal) Shelf, (File 333-137598 - Sep. 26) (BR. 05B) S-8 8X8 INC /DE/, 3151 JAY STREET, SANTA CLARA, CA, 95054, 4087271885 - 7,118,535 ($8,293,093.27) Equity, (File 333-137599 - Sep. 26) (BR. 11B) S-8 Phantom Entertainment, Inc., 800 FIFTH AVENUE, SUITE 4100, SEATTLE, WA, 98104, 941.917.0788 - 0 ($1,332,500.00) Equity, (File 333-137600 - Sep. 26) (BR. 09A) SB-2 ADVANCED CELL TECHNOLOGY, INC., 381 PLANTATION STREET, WORCESTER, MA, 01605, 508-756-1212 - 0 ($67,915,322.00) Equity, (File 333-137601 - Sep. 26) (BR. 01C) SB-2 Intersearch Group Inc, 222 KEARNY ST STE 550, SAN FRANCISCO, CA, 94108, 415-901-0410 - 0 ($20,000,000.00) Equity, (File 333-137602 - Sep. 26) (BR. 03B) 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 100 F Street, N.E., Washington, D.C. 20549-1090 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 1ST INDEPENDENCE FINANCIAL GROUP, INC DE 1.01,9.01 09/26/06 24/7 REAL MEDIA INC DE 8.01 09/25/06 ACCENTIA BIOPHARMACEUTICALS INC 1.02,9.01 09/25/06 ADOBE SYSTEMS INC DE 1.01,9.01 09/21/06 AEHR TEST SYSTEMS CA 2.02,9.01 09/26/06 AEI INCOME & GROWTH FUND 24 LLC DE 2.01,9.01 09/21/06 AEI Income & Growth Fund 26 LLC DE 2.01,9.01 09/21/06 AFS SenSub Corp. 8.01,9.01 09/26/06 AIR PRODUCTS & CHEMICALS INC /DE/ DE 5.03,9.01 09/21/06 AIR PRODUCTS & CHEMICALS INC /DE/ DE 1.01 09/20/06 AIRSPAN NETWORKS INC WA 1.02,3.02,5.02,5.03,9.01 09/25/06 AKAMAI TECHNOLOGIES INC DE 1.01 09/20/06 ALBANY INTERNATIONAL CORP /DE/ DE 1.02 09/20/06 ALCAN INC A6 1.01 09/26/06 ALEXANDRIA REAL ESTATE EQUITIES INC MD 1.01,8.01,9.01 09/25/06 ALIGN TECHNOLOGY INC DE 1.01,8.01,9.01 09/25/06 ALLIANCE FINANCIAL CORP /NY/ NY 1.01,2.03,9.01 09/21/06 ALLOY INC DE 5.02,9.01 09/22/06 ALNYLAM PHARMACEUTICALS, INC. 1.01 09/20/06 ALPHARMA INC DE 1.01,8.01,9.01 09/21/06 AMB PROPERTY CORP MD 8.01 09/21/06 AMB PROPERTY LP DE 8.01 09/21/06 AMERICAN MOLD GUARD INC 5.02,8.01 09/22/06 AMERICAN PHYSICIANS CAPITAL INC MI 8.01,9.01 09/25/06 American Telecom Services Inc 2.02,9.01 09/26/06 AMERIVEST PROPERTIES INC MD 1.01,2.01,9.01 09/21/06 ANALOGIC CORP MA 2.02,2.06,8.01,9.01 09/26/06 ANALYSTS INTERNATIONAL CORP 1.01,1.02,9.01 09/26/06 ANGELES INCOME PROPERTIES LTD 6 CA 5.02 09/21/06 ANGELES INCOME PROPERTIES LTD II CA 5.02 09/21/06 ANGELES OPPORTUNITY PROPERTIES LTD CA 5.02 09/21/06 ANGELES PARTNERS IX CA 5.02 09/21/06 ANGELES PARTNERS X CA 5.02 09/21/06 ANGELES PARTNERS XI CA 5.02 09/21/06 ANGELES PARTNERS XII CA 5.02 09/21/06 ANGELICA CORP /NEW/ MO 7.01,9.01 09/26/06 Answers CORP 7.01 09/26/06 ASYST TECHNOLOGIES INC CA 3.01 09/20/06 ATLANTIC COAST ENTERTAINMENT HOLDINGS NJ 1.02 09/20/06 AUTOMATIC DATA PROCESSING INC DE 8.01 06/30/06 AVAYA INC DE 8.01,9.01 09/20/06 BA Master Credit Card Trust II 8.01,9.01 09/26/06 BEARINGPOINT INC DE 8.01,9.01 09/20/06 BEHRINGER HARVARD REIT I INC MD 1.01,5.03,9.01 09/20/06 BIOFORCE NANOSCIENCES HOLDINGS, INC. NV 7.01,9.01 09/26/06 BioMed Realty Trust Inc MD 1.01,2.03,3.02,7.01,9.01 09/20/06 BIOMET INC IN 1.01,9.01 09/21/06 BIOVEST INTERNATIONAL INC DE 1.02,9.01 09/25/06 BLUE HOLDINGS, INC. NV 1.01 09/22/06 BPZ ENERGY INC CO 9.01 09/10/04 AMEND BRIDGE BANCORP INC NY 8.01,9.01 09/25/06 BRIDGE STREET FINANCIAL INC NY 1.01,9.01 09/21/06 BRIGHAM EXPLORATION CO DE 2.02,7.01,9.01 09/26/06 Brookdale Senior Living Inc. DE 1.01,9.01 09/25/06 Calpine Generating Company, LLC DE 4.02 09/22/06 CANDELA CORP /DE/ DE 1.01 09/22/06 CANO PETROLEUM, INC 2.02,7.01,9.01 09/25/06 CANWEST PETROLEUM CORP 1.01,5.03,9.01 09/21/06 CAPITAL ONE FINANCIAL CORP DE 8.01 09/26/06 Carrington Mortgage Loan Trust, Serie DE 8.01,9.01 09/25/06 CARSUNLIMITED COM INC NV 4.01,9.01 09/14/06 AMEND CATERPILLAR INC DE 2.03 09/21/06 CBRL GROUP INC TN 7.01,9.01 09/26/06 CENTURY ALUMINUM CO DE 8.01 09/25/06 CENTURY PROPERTIES FUND XIV CA 5.02 09/21/06 CENTURY PROPERTIES FUND XIX CA 5.02 09/21/06 CENTURY PROPERTIES FUND XV CA 5.02 09/21/06 CENTURY PROPERTIES FUND XVII CA 5.02 09/21/06 CENTURY PROPERTIES GROWTH FUND XXII CA 5.02 09/21/06 CEPHALON INC DE 8.01,9.01 09/25/06 CHARMING SHOPPES INC PA 1.01,9.01 09/20/06 Chase Mortgage Finance Trust Series 2 DE 8.01,9.01 09/26/06 CHEESECAKE FACTORY INCORPORATED DE 8.01,9.01 09/25/06 China Natural Gas, Inc. DE 5.02 09/20/06 CHRISTOPHER & BANKS CORP DE 1.01,9.01 09/21/06 CLEAN HARBORS INC MA 5.02,9.01 09/20/06 COHESANT TECHNOLOGIES INC DE 2.02,5.02,9.01 09/26/06 COMBINATORX, INC DE 1.01,9.01 09/21/06 COMMERCE ENERGY GROUP, INC. DE 1.01,2.01,9.01 09/20/06 CONSOLIDATED CAPITAL INSTITUTIONAL PR CA 5.02 09/21/06 CONSOLIDATED CAPITAL INSTITUTIONAL PR CA 5.02 09/21/06 CONSOLIDATED CAPITAL INSTITUTIONAL PR CA 5.02 09/21/06 CONSOLIDATED CAPITAL PROPERTIES III CA 5.02 09/21/06 CONSOLIDATED CAPITAL PROPERTIES IV CA 5.02 09/21/06 CONSOLIDATED CAPITAL PROPERTIES VI CA 5.02 09/21/06 CRDENTIA CORP DE 1.01,9.01 09/20/06 Creative Eateries Corp NV 8.01 09/26/06 CRESCENT REAL ESTATE EQUITIES CO TX 7.01 09/26/06 CROWN CRAFTS INC DE 7.01,9.01 09/26/06 Crystal River Capital, Inc. MD 8.01,9.01 09/25/06 CWHEQ Home Equity Loan Trust, Series 8.01,9.01 09/08/06 CWHEQ, Inc. 8.01,9.01 09/26/06 CYTODYN INC CO 4.02 01/03/06 AMEND DATAMEG CORP DE 8.01 09/26/06 DAVIDSON DIVERSIFIED REAL ESTATE I LP DE 5.02 09/21/06 DAVIDSON DIVERSIFIED REAL ESTATE II L DE 5.02 09/21/06 DAVIDSON GROWTH PLUS LP DE 5.02 09/21/06 DAVIDSON INCOME REAL ESTATE LP DE 5.02 09/21/06 DCI USA, INC DE 7.01,9.01 09/22/06 DELTA FINANCIAL CORP DE 4.01 09/25/06 Dermisonics, Inc NV 7.01,9.01 09/25/06 Dermisonics, Inc NV 8.01 09/25/06 DIAMETRICS MEDICAL INC MN 1.01,2.01,3.02,3.03,5.01, 09/26/06 5.02,5.03,5.06,9.01 DiamondRock Hospitality Co 1.01,7.01,9.01 09/20/06 DIASENSE INC/PA PA 1.01,3.02,5.02,9.01 09/18/06 DIGUANG INTERNATIONAL DEVELOPMENT CO. NV 1.01,2.01,5.01,5.06,9.01 03/21/06 AMEND DIODES INC /DEL/ DE 1.01,9.01 09/22/06 Directed Electronics, Inc. FL 1.01,2.01,2.03,9.01 09/22/06 DOE RUN RESOURCES CORP NY 1.01 09/20/06 DRESS BARN INC CT 2.02,9.01 09/26/06 DRESSER INC DE 2.02,7.01,9.01 09/25/06 DREXEL BURNHAM LAMBERT REAL ESTATE AS NY 5.02 09/21/06 DTE ENERGY CO MI 7.01,9.01 09/26/06 DUQUESNE LIGHT HOLDINGS INC PA 1.01 09/25/06 DVL INC /DE/ DE 1.01,5.02 09/01/06 DYNAMIC MATERIALS CORP DE 1.01 09/20/06 E DIGITAL CORP DE 1.01,3.02,9.01 09/26/06 EAGLE MATERIALS INC DE 7.01,9.01 09/26/06 ECASH, INC DE 4.01,9.01 08/15/06 AMEND ELECTRO SCIENTIFIC INDUSTRIES INC OR 1.01,9.01 09/21/06 Electrum Mining LTD NV 4.01,9.01 09/14/06 AMEND EMAK Worldwide, Inc. DE 1.01 09/20/06 EMDEON CORP DE 8.01,9.01 09/26/06 ENCORE MEDICAL CORP DE 1.01,5.02,9.01 09/25/06 ENDO PHARMACEUTICALS HOLDINGS INC DE 7.01,9.01 09/26/06 EVANS BOB FARMS INC DE 5.02,8.01,9.01 09/25/06 EXIDE TECHNOLOGIES DE 1.01,8.01 09/21/06 Extra Space Storage Inc. MD 8.01,9.01 09/20/06 EYI INDUSTRIES INC. 1.01 09/25/06 Federal Home Loan Bank of Atlanta X1 2.03 09/20/06 Federal Home Loan Bank of Boston X1 2.03 09/20/06 Federal Home Loan Bank of Cincinnati X1 2.03,9.01 09/20/06 Federal Home Loan Bank of Dallas 2.03 09/20/06 Federal Home Loan Bank of Des Moines X1 2.03,9.01 09/22/06 Federal Home Loan Bank of Indianapoli X1 2.03,9.01 09/20/06 Federal Home Loan Bank of New York X1 2.03,9.01 09/22/06 Federal Home Loan Bank of Pittsburgh PA 2.03,9.01 09/20/06 Federal Home Loan Bank of San Francis X1 2.03 09/20/06 Federal Home Loan Bank of Seattle 2.03 09/25/06 Federal Home Loan Bank of Topeka 2.03 09/20/06 FIRST BANCORP /PR/ PR 8.01,9.01 09/26/06 FIRST CAPITAL BANCORP, INC. VA 1.01,2.03 09/21/06 FIRST FINANCIAL BANCORP /OH/ OH 2.02 09/20/06 FIRST INDUSTRIAL LP DE 1.01,2.03,9.01 09/25/06 FIRST INDUSTRIAL REALTY TRUST INC MD 1.01,2.03,3.02,9.01 09/25/06 FIRST MONTAUK FINANCIAL CORP NJ 1.01,9.01 09/22/06 FLORIDA ROCK INDUSTRIES INC FL 7.01,9.01 09/26/06 FOSSIL INC DE 1.01,9.01 09/20/06 FOUNTAIN POWERBOAT INDUSTRIES INC 2.02 09/20/06 FPL GROUP INC FL 7.01,9.01 09/26/06 FPL GROUP INC FL 9.01 09/26/06 AMEND Franklin Auto Trust 2005-1 DE 8.01,9.01 09/20/06 FURIA ORGANIZATION INC /DE/ DE 1.01 09/25/06 FURIA ORGANIZATION INC /DE/ DE 1.01 09/25/06 G REIT INC MD 1.01,9.01 09/21/06 GENENTECH INC DE 1.01,9.01 09/20/06 GENERAL MILLS INC DE 1.01,9.01 09/25/06 GENTA INC DE/ DE 8.01,9.01 09/25/06 GLENAYRE TECHNOLOGIES INC DE 7.01,9.01 09/26/06 GMACM Home Equity Loan Trust 2006-HE4 DE 8.01,9.01 09/25/06 GRANT PARK FUTURES FUND LIMITED PARTN IL 7.01 09/22/06 GREATER CHINA MEDIA & ENTERTAINMENT C NV 1.01,3.02 09/26/06 GREEN MACHINE DEVELOPMENT CORP FL 4.01,9.01 04/29/05 GREENS WORLDWIDE INC AZ 1.01,9.01 09/21/06 GREENS WORLDWIDE INC AZ 5.01 09/22/06 GWIN INC DE 1.01,8.01,9.01 09/07/06 HAMPSHIRE GROUP LTD DE 5.02,9.01 09/25/06 HARLEYSVILLE NATIONAL CORP PA 5.02 09/26/06 HARVEY ELECTRONICS INC NY 3.01,7.01,9.01 09/20/06 HCW PENSION REAL ESTATE FUND LTD PART MA 5.02 09/21/06 HEALTH CARE REIT INC /DE/ DE 1.01,9.01 09/20/06 HealthSpring, Inc. DE 7.01 09/26/06 Home Loan Trust 2006-HI4 DE 8.01,9.01 09/26/06 HSBC PRIVATE LABEL CREDIT CARD MASTER DE 9.01 09/15/06 ICO INC TX 7.01,9.01 09/25/06 IMMUNICON CORP 7.01,9.01 09/26/06 IMMUNOMEDICS INC DE 8.01 09/26/06 INFINITY PHARMACEUTICALS, INC. DE 7.01,9.01 09/26/06 INNKEEPERS USA TRUST/FL MD 1.01,7.01,9.01 09/26/06 INNODATA ISOGEN INC DE 2.05,9.01 09/22/06 INNOVEX INC MN 2.02,2.05,2.06,9.01 09/21/06 International Gold Resources, Inc. 8.01 09/25/06 Investors Bancorp Inc DE 8.01,9.01 09/25/06 JABIL CIRCUIT INC DE 2.02,9.01 09/26/06 JACLYN INC DE 1.01,9.01 09/22/06 JLG INDUSTRIES INC PA 1.01 09/20/06 JOHNSTOWN CONSOLIDATED INCOME PARTNER CA 5.02 09/21/06 KENILWORTH SYSTEMS CORP NY 5.02,9.01 09/26/06 KFX INC DE 7.01,9.01 09/25/06 KFX INC DE 5.02,7.01,9.01 09/26/06 KREISLER MANUFACTURING CORP DE 1.01 09/26/06 LANDEC CORP \CA\ CA 2.02,9.01 09/26/06 LEARNING QUEST TECHNOLOGIES, INC. NV 3.02 09/26/06 AMEND Legacy Bancorp, Inc. DE 7.01,9.01 09/26/06 LENNAR CORP /NEW/ DE 2.02,9.01 09/26/06 LIBERTY STAR GOLD CORP NV 7.01,9.01 09/20/06 Live Nation, Inc. DE 7.01,9.01 09/26/06 LONGVIEW FIBRE CO WA 5.02,9.01 09/25/06 MARGO CARIBE INC PR 4.01,9.01 09/25/06 MARITRANS INC /DE/ DE 1.01,9.01 09/25/06 MARKWEST ENERGY PARTNERS L P 1.01,9.01 09/21/06 MARKWEST HYDROCARBON INC DE 1.01,9.01 09/21/06 MATHSTAR INC MN 7.01 09/26/06 MATRITECH INC/DE/ DE 3.01,9.01 09/21/06 MCCOMBS REALTY PARTNERS LTD CA 5.02 09/21/06 MCDATA CORP DE 9.01 09/25/06 ME PORTFOLIO MANAGEMENT LTD 8.01,9.01 09/26/06 MEDWAVE INC DE 5.02,9.01 09/21/06 MEDWAVE INC DE 3.01 09/26/06 MEDWAVE INC DE 1.01,1.02,5.02,9.01 09/21/06 MEMRY CORP DE 2.02,7.01,9.01 09/26/06 Mercator Partners Acquisition Corp. DE 1.01 09/25/06 MERIX CORP OR 2.02,9.01 09/25/06 Merrill Lynch Mortgage Investors Trus DE 8.01,9.01 09/26/06 MGI PHARMA INC MN 7.01,9.01 09/26/06 MHI Hospitality CORP MD 1.01,2.01,9.01 09/20/06 MICROHELIX INC OR 4.01 09/21/06 MICRON ENVIRO SYSTEMS INC NV 8.01,9.01 09/22/06 MISONIX INC NY 2.02,9.01 09/25/06 MMC ENERGY, INC. NV 1.01,5.02,9.01 09/26/06 MOONEY AEROSPACE GROUP LTD DE 5.02,7.01,9.01 09/26/06 MRS FIELDS FAMOUS BRANDS LLC DE 1.01 09/21/06 MURPHY OIL CORP /DE DE 7.01,9.01 09/25/06 NATIONAL HOUSING PARTNERSHIP REALTY F MD 5.02 09/21/06 NATIONAL HOUSING PARTNERSHIP REALTY F MD 5.02 09/21/06 NATIONAL HOUSING PARTNERSHIP REALTY F MD 5.02 09/21/06 NATIONAL PROPERTY INVESTORS 6 CA 5.02 09/21/06 NATIONAL PROPERTY INVESTORS 7 CA 5.02 09/21/06 NATIONAL PROPERTY INVESTORS III CA 5.02 09/21/06 NBOG BANCORPORATION INC GA 5.02 09/21/06 NETWORK CN INC DE 5.02 09/25/06 NETWORK CN INC DE 2.01,9.01 06/16/06 AMEND NEW MEDIUM ENTERPRISES INC NV 8.01 09/26/06 NEWFIELD EXPLORATION CO /DE/ DE 8.01,9.01 09/26/06 NISOURCE INC/DE DE 7.01,9.01 09/25/06 NON INVASIVE MONITORING SYSTEMS INC / FL 8.01,9.01 09/26/06 NORTH FORK BANCORPORATION INC DE 8.01,9.01 09/26/06 Novelis Inc. A6 5.02 09/21/06 AMEND NRG ENERGY, INC. DE 7.01,8.01,9.01 09/26/06 NT HOLDING CORP. DE 2.01,9.01 06/30/06 AMEND NYMEX HOLDINGS INC DE 1.01,8.01,9.01 09/20/06 O A K FINANCIAL CORP MI 8.01,9.01 09/21/06 OCEAN WEST HOLDING CORP DE 2.01,9.01 06/10/05 AMEND OHIO CASUALTY CORP OH 1.01,8.01,9.01 05/18/06 AMEND OIL DRI CORPORATION OF AMERICA DE 2.02,9.01 09/25/06 ONEOK Partners LP DE 1.01,2.03,8.01,9.01 09/20/06 Opteum Inc. MD 5.03,9.01 09/25/06 OVERSEAS SHIPHOLDING GROUP INC DE 1.01,9.01 09/25/06 OXFORD RESIDENTIAL PROPERTIES I LTD P MD 5.02 09/21/06 PACIFIC GAS & ELECTRIC CO CA 7.01,9.01 09/25/06 Paradigm Holdings, Inc WY 7.01,8.01,9.01 09/22/06 PAYCHEX INC DE 2.02 09/26/06 PDI INC 8.01,9.01 09/26/06 PENTAIR INC MN 5.02,7.01,8.01,9.01 09/26/06 PETSMART INC DE 1.01,9.01 09/20/06 PG&E CORP CA 7.01,9.01 09/25/06 Pharma-Bio Serv, Inc. 4.01,9.01 07/28/06 AMEND PHH CORP MD 1.01,4.02,8.01,9.01 09/21/06 PIZZA INN INC /MO/ MO 1.01 09/24/06 PMI GROUP INC DE 1.01,9.01 09/20/06 PONIARD PHARMACEUTICALS, INC. WA 3.03,5.03,9.01 09/22/06 PRACTICEXPERT INC NV 1.01,5.02,9.01 09/26/06 PUBLIC SERVICE ENTERPRISE GROUP INC NJ 7.01 09/26/06 PYRAMID BREWERIES INC WA 1.01,5.02 09/22/06 QUIDEL CORP /DE/ DE 7.01 09/25/06 RADISYS CORP OR 9.01 09/01/06 AMEND RAIT INVESTMENT TRUST MD 1.01,2.03,9.01 09/20/06 RAYMOND JAMES FINANCIAL INC FL 7.01,9.01 09/25/06 RED HAT INC DE 2.02,9.01 09/26/06 RENT A CENTER INC DE DE 5.02,9.01 09/21/06 REVLON CONSUMER PRODUCTS CORP DE 8.01 09/26/06 REVLON INC /DE/ DE 8.01 09/26/06 REWARDS NETWORK INC DE 1.01,9.01 09/26/06 RIVERSIDE PARK ASSOCIATES LP DE 5.02 09/21/06 Rocketinfo Inc. DE 8.01,9.01 08/25/06 ROWE COMPANIES NV 1.01,2.03,2.05,2.06,3.01,9.01 09/20/06 RUBINCON VENTURES INC DE 8.01,9.01 09/22/06 SACO I Trust 2006-9 DE 9.01 08/30/06 SALON MEDIA GROUP INC DE 1.01,3.02,9.01 09/21/06 SANFILIPPO JOHN B & SON INC DE 1.01,9.01 09/20/06 SCHLUMBERGER LTD /NV/ P8 7.01,9.01 09/26/06 SCHOLASTIC CORP DE 1.01 09/20/06 SENTO CORP UT 7.01,9.01 09/26/06 SHAW GROUP INC LA 5.02,9.01 09/26/06 SHEARSON FINANCIAL NETWORK INC NV 4.01,9.01 05/05/06 AMEND SHELTER PROPERTIES I LTD PARTNERSHIP SC 5.02 09/21/06 SHELTER PROPERTIES II LTD PARTNERSHIP SC 5.02 09/21/06 SHELTER PROPERTIES III LTD PARTNERSHI CA 5.02 09/21/06 SHELTER PROPERTIES IV LIMITED PARTNER SC 5.02 09/21/06 SHELTER PROPERTIES V LIMITED PARTNERS CA 5.02 09/21/06 SHELTER PROPERTIES VI LIMITED PARTNER CA 5.02 09/21/06 SHELTER PROPERTIES VII LTD PARTNERSHI SC 5.02 09/21/06 Shire plc 8.01,9.01 09/22/06 SMART & FINAL INC/DE DE 1.01,5.02,9.01 09/20/06 SMTC CORP DE 1.01,9.01 09/20/06 SOUTHWEST WATER CO DE 8.01,9.01 09/26/06 SOVEREIGN BANCORP INC PA 5.02,8.01 09/20/06 Spansion Inc. DE 1.01,1.02,9.01 09/20/06 Specialty Underwriting & Residential DE 8.01,9.01 09/26/06 SPORT HALEY INC CO 1.01,8.01,9.01 09/21/06 STAAR SURGICAL CO DE 7.01 09/26/06 STAAR SURGICAL CO DE 1.01,8.01 09/22/06 STRIDE RITE CORP MA 2.02,9.01 09/01/06 STURM RUGER & CO INC DE 1.01,2.01,9.01 09/26/06 SUN LIFE ASSURANCE CO OF CANADA US DE 1.01 09/21/06 SUPERIOR ENERGY SERVICES INC DE 8.01,9.01 09/25/06 SUPERIOR INDUSTRIES INTERNATIONAL INC CA 1.01 09/20/06 Sutura, Inc. 5.02,9.01 09/21/06 TALK AMERICA HOLDINGS INC DE 1.01,9.01 09/22/06 TENBY PHARMA INC DE 1.01 09/21/06 TENTHGATE INC 3.02,9.01 09/22/06 TEXAS REGIONAL BANCSHARES INC TX 8.01,9.01 09/25/06 TEXAS REGIONAL BANCSHARES INC TX 8.01,9.01 09/26/06 TIME WARNER TELECOM INC DE 1.01 09/20/06 Titan Global Holdings, Inc. UT 1.01,3.02,9.01 09/20/06 TODD SHIPYARDS CORP WA 8.01 09/26/06 TRANSAKT LTD. A0 1.01,9.01 09/25/06 TRANSAX INTERNATIONAL LTD CO 2.02,9.01 09/26/06 TRIAD GUARANTY INC DE 5.02,9.01 09/20/06 TRIMOL GROUP INC DE 8.01,9.01 09/20/06 Triton Distribution Systems, Inc. CO 1.01,3.02,5.02 09/18/06 AMEND TXU CORP /TX/ TX 7.01,9.01 09/26/06 UNITED INVESTORS GROWTH PROPERTIES MO 5.02 09/21/06 United States Oil Fund, LP DE 9.01 08/31/06 UNIVERSAL ENERGY CORP. 1.01,9.01 09/22/06 UNUMPROVIDENT CORP DE 3.01 09/20/06 US REALTY PARTNERS LTD PARTNERSHIP DE 5.02 09/21/06 USI HOLDINGS CORP DE 7.01,9.01 09/22/06 VCAMPUS CORP DE 1.01,2.03,3.02,5.03,8.01,9.01 09/25/06 VERIDICOM INTERNATIONAL INC DE 4.02 09/20/06 Vestin Realty Mortgage II, Inc 8.01,9.01 09/26/06 Viacom Inc. DE 1.01,9.01 09/25/06 VIASYS HEALTHCARE INC DE 1.01,8.01,9.01 09/20/06 VIROPRO INC NV 4.01,9.01 09/22/06 VISTA GOLD CORP 1.01,9.01 09/22/06 VISTEON CORP DE 7.01,9.01 09/26/06 VIVA INTERNATIONAL INC DE 1.01,8.01,9.01 09/13/06 WACHOVIA ASSET SECURITIZATION INC 200 8.01,9.01 09/25/06 WACHOVIA ASSET SECURITIZATION INC AST 8.01,9.01 09/25/06 WAH KING INVEST CORP. DE 1.01 09/19/06 WALGREEN CO IL 2.02,9.01 09/25/06 WASHINGTON REAL ESTATE INVESTMENT TRU MD 2.03,9.01 09/22/06 Wentworth Energy, Inc. OK 1.01,2.01,9.01 03/26/06 AMEND WEST PHARMACEUTICAL SERVICES INC PA 7.01,9.01 09/26/06 WIDEPOINT CORP DE 8.01,9.01 09/25/06 WINTHROP GROWTH INVESTORS I LP MA 5.02 09/21/06 World Omni Auto Receivables Trust 200 DE 8.01,9.01 09/20/06 XCEL ENERGY INC MN 2.02,9.01 09/26/06 XM SATELLITE RADIO HOLDINGS INC DE 3.02,8.01 09/22/06 ZAREBA SYSTEMS INC MN 8.01,9.01 09/20/06 Zone Mining LTD 4.01,9.01 09/20/06