ALLEGED FALSE STATEMENTS BRING ABOUT CFTC COMPLAINT AGAINST BLUE SKY CAPITAL MANAGEMENT CORP.

The following is an excerpt from the CFTC website: "CFTC Charges Blue Sky Capital Management Corp. and Gregory M. Schneider with Making False Statements to the National Futures Association Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a complaint charging Blue Sky Capital Management Corp. (Blue Sky) of Lebanon, Tenn., and its principal, Gregory M. Schneider of Mount Juliet, Tenn. The CFTC alleges they made false statements to the National Futures Association (NFA), the futures industry self-regulatory organization, which operates under CFTC oversight. The CFTC complaint, filed in the U.S. District Court for the Middle District of Tennessee, alleges that Blue Sky and Schneider willfully concealed material facts from and/or made false, fictitious, or fraudulent statements or representations to the NFA in connection with an NFA audit of Blue Sky conducted on or about October 21-23, 2008. At the time, Blue Sky was registered with the CFTC as a Commodity Pool Operator and a Commodity Trading Advisor, and Schneider was registered as Blue Sky’s sole Associated Person. Specifically, the complaint alleges that the defendants falsely represented that Blue Sky had only managed 10 customer accounts with an aggregate equity of approximately $20,000, that Blue Sky had managed customer accounts only since March 2008, and that Blue Sky had received no customer complaints. However, according to the complaint, the defendants failed to disclose that Blue Sky had managed approximately 80 other customer accounts in 2007 with an aggregate equity of approximately $1.2 million, which had net losses of approximately 30 percent of invested equity. Defendants also allegedly failed to disclose that a customer had complained to defendants repeatedly about his Blue Sky account prior to, and even during, the NFA audit. When confronted by the NFA in January 2009, the defendants allegedly made additional false, fictitious, or fraudulent statements regarding their failure to disclose the 2007 accounts and the customer complaint. In its continuing litigation against the defendants, the CFTC seeks permanent trading and registration bans, a civil monetary penalty, and permanent injunctions against further violations of federal commodities law. The CFTC appreciates the assistance provided by the NFA. In November 2009, the NFA permanently barred Blue Sky and Schneider from NFA membership."

NEWALLIANCE BANCSHARES IPO FRAUD SETTLED BY DEFENDANT

The following is an excerpt from the SEC website: "August 4, 2011 Securities and Exchange Commission v. Gary Richetelli, Civil Action No. 3:09-CV-00361 (CFD) (D. Conn., filed March 5, 2009) The Securities and Exchange Commission announced today that the federal court in Connecticut entered a final judgment by consent against defendant Gary Richetelli in an enforcement action relating to fraud in the initial public offering of NewAlliance Bancshares, Inc. On August 2, 2011, the U.S. District Court for the District of Connecticut entered judgment against Richetelli, 64, a resident of Milford, Connecticut ordering him to pay disgorgement of $854,945 plus prejudgment interest of $45,055 and a civil penalty of $100,000. According to the Commission's complaint, filed March 5, 2009, the action arises out of the April 2004 conversion of New Haven Savings Bank ("NHSB") from a mutual form of organization to a stock form of organization. Because mutual banks are owned by their depositors, the depositors are given first priority in receiving the shares arising out of the conversion's initial public offering. The Commission's complaint alleges that Richetelli entered into illegal arrangements with six NHSB depositors (which were hidden from NHSB) pursuant to which he funded their purchase of shares of NewAlliance stock in exchange for 90% of the profits earned on the sales of such shares. The complaint further alleges that Richetelli also illegally funded the purchase of additional shares of the stock using his mother’s NHSB account, retaining 100% of the profits derived from the sales of those shares. The complaint further alleges that, through his scheme and at the expense of other NHSB bank depositors, Richetelli illegally obtained hundreds of thousands in proceeds from the sale of NewAlliance stock that had been purchased in the IPO. Without admitting or denying the allegations in the Commission's complaint, Richetelli consented to the entry of the judgment enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and ordering him to pay disgorgement of $854,945, representing ill-gotten gains he received as a result of the conduct alleged in the complaint, together with prejudgment interest thereon in the amount of $45,055, and a civil penalty of $100,000. The judgment was entered by the Honorable Christopher Droney of the United States District Court for the District of Connecticut."

SEC ALLEGES INVESTMENT ADVISER AND OTHERS WITH FRAUD

The following is an excerpt from the SEC website: August 2, 2011 “The Securities and Exchange Commission today announced that on August 1, 2011, it obtained a temporary restraining order, asset freeze, appointment of a receiver and other emergency relief against Houston investment adviser Select Asset Management LLC (“Select Asset”), its principal Brian A. Bjork, Select Asset Fund I, LLC, Select Asset Prime Index Fund, LLC, the estate of recently deceased J. David Salinas, and two Salinas business firms, with two frauds. The complaint alleges that from 2004 through the present, Bjork offered securities in two fraudulent securities schemes, raising a total of $52 million. The complaint alleges that in the first scheme, Bjork, alongside business associate Salinas, offered investors corporate and other bonds through J. David Group of Companies, Inc., and J. David Financial Group, and raised approximately $39 million from more than 100 investors. According to the complaint, Bjork and Salinas promised investors safe, fixed income from highly-rated corporate and other bonds, but in reality they never acquired the bonds as promised. The complaint alleges that in the second scheme, Bjork—through Select Asset and its subsidiary defendant Select Capital Management LLC (“Select Capital”)—offered securities issued by two private funds and raised approximately $13 million from at least 52 investors since August 2007. According to the complaint, the two funds, which were controlled by Bjork, Select Asset and Select Capital, commingled investor money, failed to provide promised financial statements, and transferred money to fund-affiliated entities in related-party transactions undisclosed to investors. The complaint further alleges that in making the affiliated loans, the defendants failed to conduct required due diligence and loan-approval procedures that had been promised to investors in the private placement offering memoranda. The Commission’s complaint alleges all of the defendants violated and/or aided and abetted violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. The Complaint also alleges that Bjork, Select Asset and Select Capital violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. In addition to emergency relief, the Complaint seeks disgorgement with prejudgment interest, penalties and imposition of permanent injunctions. The Commission acknowledges the assistance of the U.S. Secret Service, Galveston County District Attorney Jack Roady, and the Texas State Securities Board in this matter."

JUDGMENT ENTERED AGAINST FORMER CFO OF INTERNATIONAL COMMERCIAL TELEVISION INC.

The following is an excerpt from the SEC website: August 4, 2011 The United States Securities and Exchange Commission (“Commission”) announced that on July 26, 2011, the Honorable Ronald B. Leighton, United States District Court Judge for the Western District of Washington, entered a judgment of permanent injunction against Defendant Karlheinz Redekopp. The final judgment enjoins Redekopp from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 13a-14 and 13b2-1 thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. Additionally, the final judgment bars Redekopp from serving as an officer or director of a public company for five years pursuant to Section 21(d)(2) of the Exchange Act. On August 9, 2010, the Commission filed its complaint against Redekopp, who lives in Vancouver, B.C. The complaint alleges that Redekopp, the former CFO of International Commercial Television Inc. (“ICTV”), turned millions of dollars of quarterly losses into profits by falsely accounting for ICTV’s sales of the Derma Wand, a skin care appliance that purports to reduce wrinkles and improve skin appearance. Redekopp improperly recognized revenue before the Home Shopping Network had actually sold or delivered the product to viewers. The complaint also alleges that Redekopp recorded “sales” of products that had not been shipped or that the customer was not obligated to pay for. Redekopp’s fraudulent accounting resulted in ICTV adjusting net sales by more than $3.7 million over a five-quarter period in 2007 and 2008, negating all originally reported net income for those periods to restated net losses. In addition to the relief described above, Redekopp consented to the entry of an order, without admitting or denying any of the findings in the Order, in a separate Commission administrative proceedings suspending him, pursuant to Rule 102(e) of the Commission's Rules of Practice, from appearing or practicing as an accountant before the Commission with the right to apply for reinstatement after three years.”

FORMER BASEBALL PRO CHARGED WITH INSIDER TRADING

The following is an excerpt from the SEC website: August 4, 2011 “The Securities and Exchange Commission today charged former professional baseball player Doug DeCinces and three others with insider trading ahead of a company buyout. The SEC alleges that DeCinces and his associates made more than $1.7 million in illegal profits when Abbott Park, Ill.-based Abbott Laboratories Inc. announced its plan to purchase Advanced Medical Optics Inc. through a tender offer. The SEC alleges that DeCinces, who lives in Laguna Beach, Calif., received confidential information about the acquisition from a source at Santa Ana, Calif.-based Advanced Medical Optics. DeCinces immediately began to purchase shares of Advanced Medical Optics in several brokerage accounts, buying more throughout the course of the impending transaction as he received updated information from his source. During this time, DeCinces also illegally tipped three associates who traded on the confidential information – physical therapist Joseph J. Donohue, real estate lawyer Fred Scott Jackson, and businessman Roger A. Wittenbach. DeCinces agreed to pay $2.5 million to settle the SEC’s charges, and the three others also agreed to settlements. According to the SEC’s complaint filed in U.S. District Court for the Central District of California, DeCinces received the material, nonpublic information from an employee at Advanced Medical Optics. DeCinces knew that his source was under a duty to keep the information confidential. In the weeks preceding the public announcement, DeCinces bought Advanced Medical Optics stock on several occasions, eventually totaling at least 83,700 shares in several brokerage accounts he controlled. Some of these accounts were in his grandchildren’s names. On at least one occasion, DeCinces funded his purchase of shares by liquidating a diverse portfolio of 110 stocks. When a public announcement was made by the companies on Jan. 12, 2009, the stock price for Advanced Medical Optics increased 143 percent, and DeCinces sold all of his shares for $1.2 million in profits. According to the SEC’s complaint, Donohue was DeCinces’s physical therapist at the time of the illegal trading. He bought 5,000 shares of Advanced Medical Optics stock in December 2008 and January 2009 on the basis of confidential information received from DeCinces about the impending transaction. Donohue made $75,570 when he sold the stock on the same day as the public announcement. DeCinces later asked Donohue whether he had sold his stock and congratulated him. According to the SEC’s complaint, DeCinces and Jackson shared business and social interests. During a Jan. 8, 2009, breakfast meeting, Jackson used his mobile handheld device to buy 8,500 shares of Advanced Medical Optics stock on the basis of the confidential information that DeCinces communicated to him. Jackson bought additional shares later that day and again the next day, and following the public announcement sold all of his shares for a profit of $140,259. DeCinces and Wittenbach have been longtime friends, according to the SEC’s complaint. After DeCinces tipped Wittenbach with confidential information about the impending transaction, Wittenbach bought 15,000 shares of Advanced Medical Optics stock on January 8. He also called his sister and recommended that she buy 1,000 shares of the stock, which she did later that day. On the same day of the public announcement, Wittenbach sold all of his shares for a profit of $201,692. He again called his sister and told her to sell her stock, which she did for a profit of $13,214. Without admitting or denying the SEC’s allegations, DeCinces, Donohue, Jackson, and Wittenbach agreed to settle the charges against them by consenting to the entry of final judgments permanently enjoining them from violating Sections 10(b) and 14(e) of the Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. DeCinces agreed to pay disgorgement of $1,282,691, prejudgment interest of $19,311, and a penalty of $1,197,998 for a total of $2.5 million. Donohue agreed to pay disgorgement of $75,570 and a penalty of $37,785 for a total of $113,355. Jackson agreed to pay disgorgement of $140,259, prejudgment interest of $12,508, and a penalty of $140,259 for a total of $293,026. Wittenbach agreed to pay disgorgement of $201,692, prejudgment interest of $5,768, and a penalty of $214,906 for a total of $422,366. The settlements are subject to final approval by the court.”

SEC ALLEGED SPOUSE OF FORMER PLAYBOY CEO WAS AN INSIDE TRADER IN PLAYBOY SECURITIES

The following is an excerpt from the SEC website: "August 3, 2011 The Securities and Exchange Commission today filed a civil injunctive action in the U.S. District Court for the Northern District of Illinois charging William A. Marovitz, the spouse of former Playboy CEO Christie Hefner, with illegal insider trading in Playboy stock in advance of public news announcements. The SEC alleges that on five occasions between 2004 and 2009, Marovitz traded based on confidential information that he misappropriated from Hefner, who was the CEO of Playboy during most of the trades at issue. Marovitz bought and sold Playboy stock in his own brokerage accounts ahead of public news announcements despite instructions from his wife that he should not trade in shares of Playboy and a warning from the general counsel of Playboy about his buying or selling Playboy stock. In total, Marovitz gained profits and avoided losses of $100,952. According to the SEC’s complaint, between 2004 and 2009 Marovitz misappropriated confidential, non-public information about Playboy from Hefner. Hefner made clear to Marovitz in 1998, both personally and through Playboy’s general counsel, that she expected him to keep any information he learned from her about Playboy confidential and not to trade based on this information. In November 2009, Marovitz learned about Iconix’s potential acquisition of Playboy and used that confidential information to buy Playboy stock in advance of a public announcement of a potential merger, which caused a 42% increase in Playboy’s stock price. When Iconix ended its efforts to acquire Playboy in December 2009, Marovitz sold Playboy stock before the news became public, resulting in a 10% decrease in Playboy’s stock price. The SEC also alleges that Marovitz also misused confidential information he misappropriated from Hefner about Playboy’s earnings announcements and stock offering to trade in Playboy. In May 2008, Marovitz sold Playboy stock the day before Playboy’s first quarter 2008 negative earnings announcement caused its stock price to decline by 9%. Similarly, in August 2004, Marovitz sold all of his Playboy stock the day before Playboy reported a second quarter loss resulting in an 18% drop in its stock price. And, in April 2004, Marovitz purchased Playboy stock before Playboy announced an offering of its Class B stock, which caused its stock price to increase by 8%. Without admitting or denying the allegations in the complaint, except as to jurisdiction, Marovitz has consented to entry of a final judgment that permanently enjoins him from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Marovitz has also consented to pay $168,352 in disgorgement, prejudgment interest and civil penalties. The settlement is subject to approval by the court. This case originated during a SEC examination of a broker-dealer. The Commission acknowledges the assistance of the Internal Revenue Service in this matter.”