NEW SEC WHISTLEBLOWER PROGRAM TAKES EFFECT

The following excerpt comes from the SEC website: Washington, D.C., Aug. 12, 2011 — With its new whistleblower program officially becoming effective, the Securities and Exchange Commission launched a new webpage for people to report a violation of the federal securities laws and apply for a financial award. The Dodd-Frank Wall Street Reform and Consumer Protection Act provided the SEC with the authority to pay financial rewards to whistleblowers who provide new and timely information about any securities law violation. Among other things, to be eligible, the whistleblower's information must lead to a successful SEC enforcement action with more than $1 million in monetary sanctions. The SEC's new webpage at www.sec.gov/whistleblower includes information on eligibility requirements, directions on how to submit a tip or complaint, instructions on how to apply for an award, and answers to frequently asked questions. "Early and quick law enforcement action is the key to preventing securities fraud and avoiding investor losses, and the whistleblower program gives us the tools to help achieve that goal," said Robert Khuzami, Director of the SEC's Division of Enforcement. Sean McKessy, Chief of the SEC's Office of the Whistleblower, added, "Securities fraud is not a victimless crime. That's why why it is so important for people to step forward when they witness an ongoing securities fraud or learn about one that has taken place or is about to occur. Our new whistleblower award program makes it easier for people to take that step." The SEC's new whistleblower program strengthens the SEC's ability to protect investors in several ways: Better Tips: Over the past several months, the SEC has seen an increase in the quality of tips that it has been receiving from individuals since Congress created the program. Timely Tips: Potential whistleblowers are incentivized to come forward sooner rather than later with "timely" information not yet known to the SEC. Maximizes Outside Resources: With fewer than 4,000 employees to regulate more than 35,000 entities, the SEC cannot be everywhere at all times. With a robust whistleblower program, the SEC is more likely to find and deter wrongdoing at firms it may not have otherwise uncovered New Protections Against Retaliation: Employees who come forward are provided with new tools to protect themselves against employers who retaliate. Bolsters Internal Compliance: The new rules provide significant incentives for employees to report any wrongdoing to their company's internal compliance department before coming to the SEC. Therefore, companies that would prefer their employees report internally first are incentivized to a have credible, effective compliance program in place. The SEC adopted final rules on May 25 to implement the Dodd-Frank whistleblower program. Individuals wishing to be considered for an award under the Whistleblower Program are required to submit an online questionnaire or the newly approved Form-TCR. Prior to the enactment of the Dodd-Frank Act, the SEC only had authority to reward whistleblowers in insider trading cases."

FIRST NATIONAL BANK OF OLATHE CLOSED

Enterprise Bank & Trust, Clayton, Missouri, Assumes All of the Deposits of First National Bank of Olathe, Olathe, Kansas FOR IMMEDIATE RELEASE August 12, 2011 Media Contact: First National Bank of Olathe, Olathe, Kansas, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust, Clayton, Missouri, to assume all of the deposits of First National Bank of Olathe. The six branches of First National Bank of Olathe will reopen on Saturday as branches of Enterprise Bank & Trust. Depositors of First National Bank of Olathe will automatically become depositors of Enterprise Bank & Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First National Bank of Olathe should continue to use their existing branch until they receive notice from Enterprise Bank & Trust that it has completed systems changes to allow other Enterprise Bank & Trust branches to process their accounts as well. This evening and over the weekend, depositors of First National Bank of Olathe can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of June 30, 2011, First National Bank of Olathe had approximately $538.1 million in total assets and $524.3 million in total deposits. Enterprise Bank & Trust will pay the FDIC a premium of 1.5 percent to assume all of the deposits of First National Bank of Olathe. In addition to assuming all of the deposits of the failed bank, Enterprise Bank & Trust agreed to purchase essentially all of the assets. The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $419.6 million of First National Bank of Olathe's assets. Enterprise Bank & Trust will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html. Customers with questions about today's transaction should call the FDIC toll-free at 1-800-913-3067. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/fnbo.html. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116.6 million. Compared to other alternatives, Enterprise Bank & Trust's acquisition was the least costly resolution for the FDIC's DIF. First National Bank of Olathe is the 64th FDIC-insured institution to fail in the nation this year, and the first in Kansas. The last FDIC-insured institution closed in the state was Hillcrest Bank, Overland Park, on October 22, 2010. #

FUTURES TRADER ORDERED TO PAY OVER $1.49 MILLION

The following is an excerpt from the CFTC website: "August 8, 2011 Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court default judgment order requiring Otmane El Rhazi to pay over $1.49 million in restitution and a civil monetary penalty for unlawful trading, misappropriation, and fraud. El Rhazi is a Moroccan national and a former futures and options trader and Vice President for Citigroup Global Markets Limited in the U.K. The order, entered on July 29, 2011 by Judge Denise Cote of the U.S. District Court for the Southern District of New York, requires El Rhazi to pay $373,860 in restitution and a $1,121,580 civil monetary penalty. The order also imposes permanent trading and registration bans against El Rhazi. The order stems from a CFTC complaint filed on April 15, 2011 (see CFTC Press Release 6025-11, April 18, 2011). The CFTC complaint charged El Rhazi with noncompetitive trading, fraud, and misappropriation from a Citibank, N.A. proprietary account for which he exercised trading authority as an employee of Citigroup Global Markets Limited. The court’s order finds that El Rhazi engaged in numerous noncompetitive and fictitious futures trades in order to steal money from a Citibank, N.A. proprietary account and pass the money to his personal account. Starting on November 23, 2010, El Rhazi engaged in a series of noncompetitive palladium and platinum futures transactions executed on the New York Mercantile Exchange’s Globex trading platform “in order to steal money from the Citi Account and pass the money to his own Personal Account,” according to the order. The effect of the transactions was that there was no net change in the open positions of either El Rhazi’s account or the Citibank, N.A. proprietary account. The order finds that as a result of the transactions, El Rhazi’s Personal Account profited and the Citibank, N.A. account cumulatively lost $373,860. The CFTC thanks the U.K. Financial Services Authority and the National Futures Association for their assistance.”

SEC ALLEGES INSIDER TRADING BY A COMPANY BOARD MEMBER

The following excerpt is from the SEC website: On August 5, 2011, the Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of New York charging a former member of Mariner Energy Inc.’s board of directors, and his son, a securities industry professional, with illegally tipping and trading on the basis of inside information about the impending acquisition of Mariner Energy. The SEC’s complaint alleges that H. Clayton Peterson, who served on Mariner Energy, Inc.’s board of directors from 2006 through 2010, provided his son, Drew Clayton Peterson, with confidential information, learned during various board meetings, about Apache Corporation’s upcoming acquisition of Mariner Energy. According to the allegations, in the week leading up to the April 15, 2010 announcement, Clayton Peterson tipped his son on multiple telephone calls and at in-person meetings about the impending takeover. Drew Peterson, a managing director at a Denver-based investment adviser, then traded on the illegally obtained inside information and purchased Mariner Energy stock for himself, his relatives, his clients, and for a close friend. Drew Peterson also tipped other close friends as to the impending acquisition of Mariner Energy who also traded on the illegally obtained information. The insider trading by the Petersons and others generated more than $5.2 million in illicit profits. According to the SEC’s complaint, Clayton Peterson explicitly instructed his son, Drew Peterson, to purchase Mariner Energy stock for a family member based on positive news that the company was about to announce. As the announcement date neared, Clayton Peterson was even clearer in his discussions with his son, telling him that the company was going to be acquired and would no longer be a public company within a few days. Based on the inside information Drew Peterson learned from his father, Drew Peterson purchased Mariner Energy stock for his own accounts, as well as for his relatives, his clients, and for a close friend. In addition, Drew Peterson used the nonpublic information provided by his father to tip several close friends. One of those friends, a portfolio manager at a hedge fund, reaped approximately $5 million in illegal profits for himself, his hedge funds and his relatives. The SEC’s complaint charges Clayton Peterson and Drew Peterson with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks a final judgment permanently enjoining the defendants from future violations of the above provisions of the federal securities laws, ordering them to disgorge their ill-gotten gains plus prejudgment interest on a joint and several basis, and ordering them to pay financial penalties. The SEC also seeks to permanently prohibit Clayton Peterson from acting as an officer or director of any registered public company.”

FIRST NATIONAL BANK OF OLATHE WAS CLOSED BY THE COMPTROLLER OF THE CURRENCY

Enterprise Bank & Trust, Clayton, Missouri, Assumes All of the Deposits of First National Bank of Olathe, Olathe, Kansas The following excerpt is from the FDIC website: August 12, 2011 Media Contact: First National Bank of Olathe, Olathe, Kansas, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust, Clayton, Missouri, to assume all of the deposits of First National Bank of Olathe. The six branches of First National Bank of Olathe will reopen on Saturday as branches of Enterprise Bank & Trust. Depositors of First National Bank of Olathe will automatically become depositors of Enterprise Bank & Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First National Bank of Olathe should continue to use their existing branch until they receive notice from Enterprise Bank & Trust that it has completed systems changes to allow other Enterprise Bank & Trust branches to process their accounts as well. This evening and over the weekend, depositors of First National Bank of Olathe can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of June 30, 2011, First National Bank of Olathe had approximately $538.1 million in total assets and $524.3 million in total deposits. Enterprise Bank & Trust will pay the FDIC a premium of 1.5 percent to assume all of the deposits of First National Bank of Olathe. In addition to assuming all of the deposits of the failed bank, Enterprise Bank & Trust agreed to purchase essentially all of the assets. The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $419.6 million of First National Bank of Olathe's assets. Enterprise Bank & Trust will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html. Customers with questions about today's transaction should call the FDIC toll-free at 1-800-913-3067. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/fnbo.html. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116.6 million. Compared to other alternatives, Enterprise Bank & Trust's acquisition was the least costly resolution for the FDIC's DIF. First National Bank of Olathe is the 64th FDIC-insured institution to fail in the nation this year, and the first in Kansas. The last FDIC-insured institution closed in the state was Hillcrest Bank, Overland Park, on October 22, 2010.

A FORMER MANAGING DIRECTOR OF NASDAQ STOCK EXCHANGE EXCHANGES FREEDOM FOR PRISON TIME

The following excerpt is from the Department of Justice website: “Friday, August 12, 2011 Former NASDAQ Managing Director Sentenced to 42 Months in Prison for Insider Trading WASHINGTON – Donald Johnson, a former managing director of the NASDAQ Stock Market, was sentenced today to 42 months in prison for engaging in insider trading on multiple occasions based on material, non-public information he obtained in his capacity as a NASDAQ executive. Johnson was also ordered to forfeit $755,066. The sentence was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Eastern District of Virginia Neil H. MacBride. Johnson, 57, of Ashburn, Va., was sentenced by U.S. District Judge Anthony J. Trenga in the Eastern District of Virginia. Johnson pleaded guilty on May 26, 2011, to one count of securities fraud. In pleading guilty, he admitted that, from 2006 to 2009, he purchased and sold stock in NASDAQ-listed companies based on material, non-public information, or inside information, that he obtained through his position as an executive at NASDAQ. “Mr. Johnson’s insider status at one of our nation’s largest securities exchanges gave him access to highly sensitive information, which allowed him to anticipate the rise and fall of certain stocks,” said Assistant Attorney General Breuer. “Armed with this insider information, Mr. Johnson made investing look easy. He pocketed hundreds of thousands of dollars. But he did it by exploiting his trusted position to gain an unfair – and illegal – advantage in the market. Today’s sentence should leave no doubt in the minds of investors inclined to cheat that insider trading is a serious crime, with serious consequences.” “Insider trading is an insidious crime that threatens the integrity of our financial markets, especially when the illegal trades are made by a trusted securities exchange official,” said U.S. Attorney MacBride. “Mr. Johnson used his position at NASDAQ to make quick profits from sensitive information companies provided him. He learned what every other trader on Wall Street must now realize: We’re watching, and when you’re caught you’ll face serious time in prison.” According to court documents, from August 2006 to September 2009, Johnson was a managing director on NASDAQ’s market intelligence desk in New York. The market intelligence desk provides trading analysis and market information to the companies that list on NASDAQ. According to court documents, Johnson monitored the stock of companies traded on NASDAQ and offered NASDAQ-listed companies information and analyses concerning trading in their own stock. To enable him to perform these services, NASDAQ-listed companies routinely entrusted Johnson with material, non-public information about their company, including advance notice of announcements concerning earnings, regulatory approvals and personnel changes. Johnson admitted that he repeatedly used this information to purchase or sell short stock in various NASDAQ-listed companies shortly before the information was made public. He would then generate substantial gains by reversing those positions soon after the announcement. According to court documents, in order to conceal his illegal trading, Johnson executed these trades in a brokerage account in his wife’s name. Johnson failed to disclose this account to NASDAQ in violation of NASDAQ rules. Johnson admitted in his plea that he made illegal purchases and sales of stock in NASDAQ-listed companies on at least eight different occasions. In addition, at sentencing, Johnson did not dispute that he engaged in insider trading on a ninth occasion, and the court ordered forfeiture based on proceeds from all nine instances. The companies whose securities he traded were Central Garden and Pet Co.; Digene Corporation; Energy Conversion Devices, Inc.; Idexx Laboratories Inc.; Pharmaceutical Product Development Inc.; and United Therapeutics Corporation. According to court documents, Johnson traded ahead of important announcements by these companies. For example, in November 2007, Johnson used inside information related to successful trial results for United Therapeutics’ drug Viveta (now called Tyvaso) to purchase shares of United Therapeutics before the trial results were announced. Soon after the announcement, Johnson sold the shares and gained more than $175,000 in profits. According to court documents, in July 2009, Johnson again improperly used inside information he obtained from United Therapeutics about the approval of its drug Tyvaso to purchase the company’s shares before the approval was announced. He sold the shares after the announcement and gained more than $110,000 in profits. The Securities and Exchange Commission (SEC) has filed a related civil enforcement action against Johnson in the Southern District of New York. This case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Raymond E. Patricco Jr., of the Eastern District of Virginia. The department recognizes the substantial assistance of the SEC, which conducted its own investigation and referred the conduct to the department. The department also recognizes the substantial assistance of the U.S. Postal Inspection Service, which conducted the criminal investigation. The Financial Industry Regulatory Authority also provided assistance. Brigham Cannon, formerly a Trial Attorney of the Criminal Division, also assisted with the investigation. This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.”