BANK OF CHOICE WAS TAKEN OVER BY THE FDIC

The following press release was sent out by the FDIC via e-mail: "Bank of Choice, Greeley, Colorado, was closed today by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank Midwest, National Association, Kansas City, Missouri, to assume all of the deposits of Bank of Choice. The 17 branches of Bank of Choice will reopen during their normal business hours beginning Saturday as branches of Bank Midwest, N.A. Depositors of Bank of Choice will automatically become depositors of Bank Midwest, N.A. 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 Bank of Choice should continue to use their existing branch until they receive notice from Bank Midwest, N.A. that it has completed systems changes to allow other Bank Midwest, N.A. branches to process their accounts as well. This evening and over the weekend, depositors of Bank of Choice 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 March 31, 2011, Bank of Choice had approximately $1.07 billion in total assets and $924.9 million in total deposits. In addition to assuming all of the deposits, Bank Midwest, N.A. agreed to purchase approximately $853.0 million of the failed bank's assets. Customers with questions about today's transaction should call the FDIC toll-free at 1-800-887-7340. The phone number will be operational this evening until 9:00 p.m., Mountain Daylight Time (MDT); on Saturday from 9:00 a.m. to 6:00 p.m., MDT; on Sunday from noon to 6:00 p.m., MDT; and thereafter from 8:00 a.m. to 8:00 p.m., MDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/bankofchoice.html. As part of this transaction, the FDIC will acquire a value appreciation instrument. This instrument serves as additional consideration for the transaction. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $213.6 million. Compared to other alternatives, Bank Midwest, N.A.'s acquisition was the least costly resolution for the FDIC's DIF. Bank of Choice is the 58th FDIC-insured institution to fail in the nation this year, and the fifth in Colorado. The last FDIC-insured institution closed in the state was Signature Bank, Windsor, on July 8, 2011."

CFTC ENFORCEMENT ACTIONS JANUARY-JULY 2011

The following excerpt is from the CFTC website: "The CFTC Division of Enforcement investigates and prosecutes alleged violations of the Commodity Exchange Act and Commission regulations. The CFTC takes enforcement actions against individuals and firms registered with the Commission, those who are engaged in commodity futures and option trading on designated domestic exchanges, and those who improperly market futures and options contracts. DateEnforcement Actions 07/19/2011 Ecoval Dairy Trade, Inc. Ordered to Pay $1,425,000 Penalty to Settle CFTC Charges of Attempted Manipulation of Non Fat Dry Milk Futures Prices Order: Ecoval Dairy Trade, Inc. 07/15/2011 CFTC Charges Jeffery A. Lowrance and His Company, First Capital Savings and Loan, with Operating a Million Dollar Foreign Currency Ponzi Scheme Complaint: Jeffery Alan Lowrance,et al. 07/13/2011 Federal Court in Illinois Orders Joseph A. Dawson to Pay $2.1 Million Penalty for Commodity Pool Fraud and Misappropriation Order: Joseph A. Dawson, et al. Order: Joseph A. Dawson, et al. Order: Joseph A. Dawson, et al. CFTC Charges Illinois Resident Joseph A. Dawson and His Company, Dawson Trading LLC, with Commodity Pool Fraud 07/13/2011 CFTC Charges Robert S. Moss of North Carolina with Commodity Pool Fraud and Misappropriation Order: Robert S. Moss 07/12/2011 CFTC Obtains Default Judgment and Permanent Injunction against Florida Resident David L. Ortiz and His Companies for Defrauding Customers in Off-Exchange Foreign Currency Scam Order: Goyep International, Inc., et al. CFTC Charges Florida Resident David L. Ortiz and his Companies, Goyep International, Inc. and Royal Returns, Inc., with Defrauding Customers in an Off-Exchange Foreign Currency Scam 07/08/2011 CFTC Charges CIS Commodities LLC and Allen N. Ward with Misappropriation of Customer Funds and also Charges CIS, Ward, Trans Global Investments, LLC and Charles Leroy Timberlake with Misrepresentation and Issuing False Statements Order: CIS Commodities LLC, et al. Complaint: CIS Commodities LLC, et al. 07/07/2011 Texas Federal Court Issues Order Freezing Assets of Mark Rice and His Houston Company, Financial Robotics Order: Financial Robotics, Inc., et al. Complaint: Financial Robotics, Inc., et al. 06/30/2011 CFTC Charges Grand Island, Nebraska Resident with Fraud and Records Violations in Connection with $4 Million Commodity Pool Complaint: Grace Elizabeth Reisinger, et al. 06/30/2011 CFTC Charges Colorado-based Flint-McClung Capital LLC and Shawon McClung with Fraud and Misappropriation in $1.9 Million Off-Exchange Foreign Currency Ponzi Scheme Complaint: Flint-McClung Capital LLC, et al. 06/30/2011 CFTC Charges Two Air Traffic Controllers and Commodity Trader Michael Gomez with Fraud and Misappropriation in $1.4 Million Dollar Off-Exchange Foreign Currency Scheme Order: Louis J. Giddens, Jr., et al. Complaint: Louis J. Giddens, Jr., et al. 06/27/2011 CFTC Orders Mark Adrian of Florida to Pay $140,000 Civil Penalty in Fraudulent Foreign Currency Scheme Order: CFTC v. Mark J. Adrain 06/24/2011 CFTC Charges Juvenal Machado and Florida-based Invers Forex, LLC with Defrauding Foreign Currency Customers of Almost $800,000 in Ponzi Scheme Complaint: CFTC v. Invers Forex, LLC, et al. 06/20/2011 CFTC Obtains Default Judgment and Permanent Injunction against ForInvest Group aka ForInvests Group LLC for Violating Multiple CFTC Registration Requirements Order: CFTC v. ForInvest Group CFTC Sues 14 Foreign Currency Firms in Nationwide Sweep 06/15/2011 Federal Court in Florida Orders Capital Blu Management, LLC, Donovan Davis Jr., Damien Bromfield, Blayne Davis and DD International Holdings, LLC to Pay More than $17 Million for Committing Fraud Order: Capital Blu Management, LLC, et al. Judgment: Capital Blu Management, LLC,e t al. CFTC Charges Two Florida Companies and Three Florida Men with Operating a Fraudulent Commodity Pool that Solicited Approximately $17 Million from about 100 Investors 06/15/2011 CFTC Charges Victor E. Cilli and his company, Progressive Investment Funds LLC, with Operating a Commodity Pool Ponzi Scheme and Misappropriating Customer Funds Complaint: Victor Eugene Cilli, et al. 06/07/2011 CFTC Revokes Registrations of Texas-based M25 Investments, Inc. and M37 Investments, LLC In the Matter of: M25 Investments, Inc. and M37 Investments, LLC CFTC Seeks to Revoke the Registrations of Texas-based M25 Investments, Inc. and M37 Investments, LLC Federal Court Orders More than $16.2 Million in Customer Restitution and Monetary Penalties against Texas Defendants Scott P. Kear, Sr., Jeffery L. Lyon and their Firms in CFTC Anti-Fraud Action 06/07/2011 CFTC Charges Neal E. Hall of North Carolina with Registration and Disclosure Violations Complaint: Neal E. Hall 06/01/2011 Federal Court Orders Moroccan Resident Richmond Hamilton, Jr., and Chicago Commodity Pool Operator Raleigh Capital Management, Inc. to Pay More than $4 Million in Restitution and a Civil Monetary Penalty for Misappropriation & False Statements to the NFA Order: Raleigh Capital Management, et al. Federal Court Freezes Assets of Moroccan Resident Richmond Hamilton, Jr., and the Chicago Commodity Pool He Manages in a $1 Million Pool Anti-Fraud Case Brought by the CFTC 05/26/2011 Federal Court in Texas Orders Richard D. Theye to Pay More than $6.2 Million for Defrauding Investors in a Multi-Million Dollar Ponzi Scheme Order: Richard D. Theye, et al. CFTC Charges Richard D. Theye and His Company, Micind Capital Management, Inc., with Fraud in Connection with a Multi-Million Dollar Ponzi Scheme 05/26/2011 CFTC Charges Nebraska Residents Jonathan W. Arrington, Michael B. Kratville and Michael J. Welke and their Companies with $4.7 Million Fraud Complaint: MJM Enterprises LLC, et al. 05/25/2011 CFTC Sanctions Cadent Financial Services LLC $125,000 for Supervision Violations Order: Cadent Financial Services LLC 05/24/2011 CFTC Charges Parnon Energy Inc., Arcadia Petroleum Ltd. and Arcadia Energy (Suisse) SA with Price Manipulation in the Crude Oil Market Complaint: Parnon Energy Inc., et al. 05/17/2011 CFTC Charges Florida Firm, American Precious Metals, LLC, and Principals, Sammy J. Goldman and Harry Robert Tanner, Jr., with Fraud Complaint: American Precious Metals, LLC, et al. 05/16/2011 CFTC Charges Puerto Rico Resident Angel F. Collazo and ACJ Capital, Inc. with Solicitation Fraud and Issuing False Statements in Off-Exchange Leveraged Foreign Currency Scheme Complaint: ACJ Capital, Inc., et al. Order: ACJ Capital, Inc., et al. 05/12/2011 CFTC Settles Charges against FX Trading, LLC for Failing to Maintain Minimum Net Capital Required for Futures Commission Merchants Order: FX Trading, LLC 05/09/2011 Federal Court Orders Russian National Marat Yunusov to Pay $500,000 Civil Monetary Penalty for Illegal Commodity Futures Trading Scheme Order: Marat Yunusov CFTC Charges Marat Yunusov with Engaging in a Series of Unlawful Commodity Futures Transactions on Globex 05/04/2011 CFTC Charges Michigan Man Jeffrey L. Groendyke with Operating a Foreign Currency Ponzi Scheme and Misappropriating Customer Funds Order: Jeffery L. Groendyke Complaint: Jeffery L. Groendyke 05/02/2011 CFTC Permanently Bars Former CME Floor Broker Thorbjorn Haveman from Trading for Misappropriation and Fictitious, Noncompetitive and Unauthorized Trading Order: Thorbjorn Haveman 05/02/2011 CFTC Sanctions New York Resident Howard Winell and His Companies, Winell Associates, Inc., and Maxie Partners GP, LLC, More than $5.2 Million for Fraud Order: Howard Winell, et al. 04/28/2011 CFTC Files Anti-Fraud Action against California Companies 20/20 Trading Company, Inc. and 20/20 Precious Metals, Inc. and their Employees, Bharat Adatia, Sharief McDowell and Todd Krejci Order: 20/20 Trading Company, Inc. et al. Complaint: 20/20 Trading Company, Inc. et al. 04/21/2011 New York Federal Court Orders Brian Kim and Liquid Capital Management, LLC, to Pay More than $12 Million in Restitution and Monetary Sanctions for Commodity Pool Fraud Order: Brian Kim et al. New York Federal Court Freezes Assets of Brian Kim and His New York Firm, Liquid Capital Management LLC 04/21/2011 Receiver Makes $792 Million Initial Distribution to Investors in New York Defendants Paul Greenwood’s and Stephen Walsh’s $1.3 Billion Investment Ponzi Scam Charged by the CFTC and SEC Order: Stephen Walsh, et al. CFTC and Defendant Paul Greenwood Agree to a Consent Order Finding that Greenwood Operated a Multi-Billion Dollar Investment Scam CFTC Charges New York Residents with Operating $1.3 Billion Investment Scam 04/18/2011 CFTC Charges Citigroup Trader Otmane El Rhazi, a Moroccan National, with Unlawful Trading and Misappropriation from a Citibank Proprietary Account Order: Otmane El Rhazi Complaint: Otmane El Rhazi 04/14/2011 CFTC Charges California Resident Lyndon Lydell Parrilla and His Company, Green Tree Capital, with Fraud in Multi-Million Dollar Forex Scheme Order: Green Tree Capital, et al. Complaint: Green Tree Capital, et al. 04/12/2011 CFTC Settles Charges against Kuen Cheol Song for Illegal, Fictitious Trading Scheme Order: Kuen Cheol Song CFTC Files Enforcement Action against Singapore National Kuen Cheol Song for Engaging in an Illegal Trading Scheme 04/06/2011 CFTC Charges Pennsylvania-based New Century Investment Management LLC and Ward Onsa of Marco Island, Florida, with Operating a Commodity Pool Ponzi Scheme Complaint: Ward Onsa, et al. 03/30/2011 CFTC Charges Florida Precious Metals Company Kastle & Hawke, Inc. and its Principals, James A. Ward and Nathaniel R. Walker, with Fraud Order: Kastle & Hawke, Inc., et al. Complaint: Kastle & Hawke, Inc., et al. 03/29/2011 U.S. District Court Orders Texas Man Willie Lee Cloud, Jr. and his Company, C & R Financial, Inc., to Pay More than $5.35 Million in Restitution and a Civil Monetary Penalty for Operating a Foreign Currency Ponzi Scheme Order: Willie Lee Cloud, Jr. CFTC Charges Texas Resident Willie L. Cloud, Jr. and His Investment Company, C & R Financial, with Operating a Foreign Currency Ponzi Scheme 03/22/2011 CFTC Sanctions Hernando Chovil of McLean, Virginia, for Fraud in Connection with Operating a Commodity Pool Order: Hernando Chovil 03/22/2011 CFTC Sanctions Bunge Global Markets, Inc. $550,000 for Entering Pre-Market Soybean Futures Orders on Globex that Caused Non-Bona Fide Prices to be Reported Order: Bunge Global Markets, Inc. 03/21/2011 CFTC Charges Florida Resident Jeremy M. Globe and his Company, GlobeFX Club, Inc., with Making False Statements to the National Futures Association Complaint: GlobeFX Club, Inc. et al. 03/21/2011 CFTC and State of California Charge The Trade Tech Institute, Inc., Technology Trading International, Inc., Robert Sorchini and Richard Carter with Fraudulently Soliciting More than 600 Managed Commodity Trading Accounts Order: The Trade Tech Institute, Inc., et al. Complaint: The Trade Tech Institute, Inc., et al. 03/17/2011 CFTC Charges Florida Couple and their Company, Queen Shoals Consultants, LLC, with Defrauding Foreign Currency Customers of More than $1.44 Million Complaint: Queen Shoals Consultants, LLC, et al. CFTC Charges Charlotte, North Carolina Couple Sidney and Charlotte Hanson and their Companies with Operating a $22.5 Million Foreign Currency Ponzi Scheme 03/16/2011 Federal Court Orders Brookshire Raw Materials Management, LLC, John M. Marshall, Stephen Z. Adams and Other Companies to Pay More than $15.8 Million for Defrauding Pool Participants and Misappropriating Millions of Dollars in a Commodity Pool Scheme Order: Brookshire Raw Materials Management, LLC Consent Order: Brookshire Raw Materials, et al. Order: Brookshire Raw Materials Group, Inc., et al. Federal Court Order Freezes Assets of Illinois Commodity Pool Operator Brookshire Raw Materials Management, LLC and its Canadian Principals Based on CFTC Charges of Misappropriating More Than $4.6 Million in a Ponzi Scheme 03/15/2011 CFTC Charges Alan James Watson, Michael S. Potts and Cash Flow Financial LLC with Defrauding Customers in $45 Million Commodity Pool Ponzi Scheme Restraining Order: Cash Flow Financial, LLC, et al. Complaint: Cash Flow Financial, LLC, et al. CFTC Charges Florida Resident Phillip Milton and Virginia Residents Gregory and William Center with Operating a $28 Million Ponzi Scheme California Court Imposes Fines and Other Sanctions Totaling More than $25 Million against Safevest LLC of Mission Viejo, California and its Owners, Jon G. Ervin and John V. Slye 03/10/2011 Federal Court in North Carolina Orders Dennis Todd Hagemann and Yellowstone Partners, Inc. to Pay More than $1.6 Million for Defrauding Investors in a Foreign Currency Ponzi Scheme Order: Yellowstone Partners, Inc., et al. CFTC Charges Raleigh, North Carolina Man and His Company, Yellowstone Partners, Inc., with Operating a Foreign Currency Ponzi Scheme 03/09/2011 CFTC Charges Jacob Juma Omukwe and his Companies with Solicitation Fraud and Misappropriation in $3 Million Foreign Currency Scheme Order: Jade Investments Group, LLC et al. Ex Parte Order: Jade Investments Group, LLC et al. Complaint: Jade Investments Group, LLC et al. 03/04/2011 Arizona Federal Court Imposes More than $1.1 Million in Restitution and Monetary Sanctions on Helmut H. Weber, Charged with Fraud and Misappropriation in Foreign Currency Scheme Order: Helmut H. Weber Order: Helmut H. Weber CFTC Charges Scottsdale, Arizona Resident Helmut H. Weber d/b/a Weber Capital Management with Solicitation Fraud and Misappropriation in Forex Scheme 03/04/2011 Tennessee Federal Court Imposes More than $49.7 Million in Monetary Sanctions on Dennis R. Bolze and His Company, Centurion Asset Management, Inc. for Fraud and Misappropriation in Commodity Pool Ponzi Scheme Default Order: Dennis R. Bolze, et al. Order: Dennis R. Bolze, et al. CFTC Charges Tennessee Resident and Las Vegas-based Firm with Fraud and Misappropriation in $20 Million Commodity Pool Ponzi Scheme 03/03/2011 California Federal Court Imposes More than $46.9 Million in Monetary Sanctions on Robert D. Bame and his Firm, Forward Investment Group, LLC, for Commodity Pool Fraud Order: Robert D. Bame, et al. Order: Robert D. Bame, et al. California Commodity Pool Operator and its Sole Manager Charged in Federal Court with Commodity Pool Fraud 03/01/2011 New York Federal Court Orders Staten Island Resident Jeffrey Shalhoub and Jeff Shalhoub Investments to Pay More than $700,000 in Connection with a Commodity Futures Ponzi Scheme Order: Jeffrey Shalhoub, et al. CFTC Files Anti-Fraud Action against Jeffrey Shalhoub and Jeff Shalhoub Investments for Operating a Futures Ponzi Scheme 02/28/2011 CFTC Charges Florida Resident David L. Ortiz and his Companies, Goyep International, Inc. and Royal Returns, Inc., with Defrauding Customers in an Off-Exchange Foreign Currency Scam Order: David L. Ortiz, et al. Complaint: David L. Ortiz, et al. 02/24/2011 CFTC Seeks to Revoke the Registrations of Texas-based M25 Investments, Inc. and M37 Investments, LLC Notice: M25 Investments, Inc. and M37 Investments, LLC Federal Court Orders More than $16.2 Million in Customer Restitution and Monetary Penalties against Texas Defendants Scott P. Kear, Sr., Jeffery L. Lyon and their Firms in CFTC Anti-Fraud Action Federal Court Freezes Assets of Texas Trading Firms M25 Investments, Inc. and M37 Investments, LLC, and Scott Kear, Sr., Jeffrey Lyon and David Seaman, Charged by the CFTC with an $8 Million Forex Fraud 02/22/2011 CFTC Charges Missouri Resident Randall L. Stuckey and His Three Business Entities with Soliciting at Least $2.8 Million from Customers in Foreign Currency (Forex) Futures Fraud Order: Randall Lynn Stuckey, et al. Complaint: Randall Lynn Stuckey, et al. 02/22/2011 CFTC Sanctions Cantor Fitzgerald & Co. $100,000 for Wash Sales and Causing Noncompetitive Trading in the Reformulated Gasoline Futures Contract Traded on the New York Mercantile Exchange Order: Cantor Fitzgerald & Co. 02/17/2011 Federal Court Freezes Assets of Texas Man Larry Benny Groover, Charged by the CFTC with Operating a Foreign Currency Ponzi Scheme and Misappropriating Customer Funds Order: CFTC v. Larry Benny Groover, et al. Complaint: CFTC v. Larry Benny Groover, et al. 02/16/2011 CFTC Obtains Asset Freeze against Keith Simmons, Deanna Salazar, Bryan Coats, Jonathan Davey and Their Companies, Charged in $35 Million Foreign Currency Ponzi Scheme Complaint: CFTC v. Keith Simmons, et al. Consent Order: Deanna Salazar, Life plus Group, LLC and Lawrence Salazar Order: Keith F. Simmons, Bryan Coats and Jonathan Davey 02/15/2011 New York Federal Court Freezes Assets of Brian Kim and His New York Firm, Liquid Capital Management LLC Order: CFTC v. Brian Kim, et al. Complaint: CFTC v. Brian Kim, et al. 02/14/2011 CFTC Charges Two North Carolina Residents and their Company, PMC Strategy, LLC, with Fraudulently Soliciting at least $669,000 in Foreign Currency Ponzi Scheme Order: CFTC v. PMC Strategy, LLC, et al. Complaint: CFTC v. PMC Strategy, LLC, et al. 02/09/2011 CFTC Charges New York Resident Hasaan R. Steel with Commodity Pool Fraud Order: CFTC v. Hasaan R. Steel Complaint: CFTC v. Hasaan R. Steel 02/07/2011 CFTC Orders Chicago-Based Futures Commission Merchant Newedge USA, LLC to Pay More than $220,000 for Violating Speculative Position Limits in Live Cattle Futures Trading Order: Newedge USA, LLC 02/04/2011 CFTC Wins Commodity Fraud Trial 02/03/2011 CFTC Sanctions New York Resident James M. Peister and His Company, Northstar International Group, Inc., More than $11 Million to Settle CFTC Anti-Fraud Action Order: Northstar International Group, Inc., et al. 02/02/2011 Minnesota Federal Court Orders Minnesota Man Charles E. Hays and His Company, Crossfire Trading, LLC, to Pay More than $84 Million in Disgorgement and Civil Monetary Penalties in Connection with Multi-Million Dollar Commodity Pool Ponzi Scheme Order: CFTC v. Crossfire Trading LLC, et al. CFTC Charges Minnesota Resident Charles “Chuck” E. Hays and His Company, Crossfire Trading, LLC, with Running a $5.5 Million Ponzi Scheme 01/31/2011 Utah Federal Court Freezes Assets of Robert Andres and His Houston Firm, Winsome Investment Trust, and Robert Holloway and His Salt Lake City Company, US Ventures LC Order: CFTC v. Winsome Investment Trust, et al. Complaint: CFTC v. Winsome Investment Trust, et al. 01/26/2011 CFTC Orders Illinois Traders Andrew Daniels, Ed Taylor and Daniels Trading Group LLC to Pay $2 Million and Imposes Trading Prohibition for Violating Rough Rice Speculative Position Limits and Concealing Material Facts from the CME Group Order: Andrew W. Daniels, et al. 01/26/2011 CFTC Sues 14 Foreign Currency Firms in Nationwide Sweep Complaint: CFTC v. InovaTrade, Inc. Complaint: CFTC v. J&K Futures, Inc. Complaint: CFTC v. GIGFX, L.L.C. Complaint: CFTC v. Instatrade Corporation, et al. Complaint: CFTC v. FIG Solutions Limited, Inc. Complaint: CFTC v. Kingdom Forex Trading Complaint: CFTC v. Prime Forex, LLC Complaint: CFTC v. Wall Street Brokers, LLC Complaint: CFTC v. InvesttechFX Technologies Complaint: CFTC v. FXOpen Investments Complaint: CFTC v. FXPRICE, LLC Complaint: CFTC v. ForInvest Group Complaint: CFTC v. EuroForex Development LLC 01/25/2011 Florida Federal Court Orders Sarasota Resident Beau Diamond and his Company, Diamond Ventures LLC, to Pay More than $4 Million in Restitution and Civil Monetary Penalties in Connection with Multi-Million Dollar Forex Fraud Order: CFTC v. Beau Diamond, et al. Federal Court Freezes the Assets of Florida Resident Beau Diamond and Diamond Ventures LLC, Charged by the CFTC with Operating a $37 Million Dollar Forex Fraud 01/24/2011 CFTC Charges Arizona Resident Anthony Eugene Linton with Operating a Foreign Currency Ponzi Scheme Order: CFTC v. Anthony Eugene Linton Complaint: Anthony Eugene Linton d/b/a The Private Trading Pool 01/13/2011 CFTC Sanctions Commodity Trading Advisor Alan F. Dasher Order: Alan F. Dasher 01/11/2011 CFTC Charges California Resident Scott Bottolfson with Operating a $14 Million Commodity Pool Ponzi Scheme Complaint: Increase Investments, Inc., Spirit Investments, Inc., and Scott Bottolfson 01/07/2011 Utah Resident Darren L. Shanks and His Firm, Forex Auto Profits, LLC, Ordered to Pay More than $2.9 Million in Fines and Restitution for Fraud and Misappropriation in Foreign Currency Scheme.

SEC GETS FAST FROZEN ASSETS OF THREE INSIDER TRADING FIRMS

The following is an excerpt from the SEC website:

Washington, D.C., July 18, 2011 – The Securities and Exchange Commission today announced that it has obtained asset freezes and other emergency relief against three Swiss-based entities it has charged with insider trading ahead of a July 11 public announcement that Swiss-based Lonza Group Ltd would be acquiring Connecticut-based Arch Chemicals Inc.

According to the SEC’s complaint filed on July 15 within days of the alleged insider trading, Compania International Financiera S.A., Coudree Capital Gestion S.A., and Chartwell Asset Management Services purchased more than a million common shares of Arch between July 5 and July 8, mostly in accounts based in London, England. Immediately after the acquisition announcement on July 11, the firms began selling the recently-purchased shares of Arch common stock for millions of dollars in profits.

According to the SEC’s complaint, at the time the three entities purchased their Arch shares, they are believed to have been in possession of material, non-public information about Lonza’s proposed acquisition of Arch.

“The SEC’s swift action to secure a judicial freeze order only four days after the observation of suspicious trading prevented millions of dollars from moving offshore,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.

In filing its complaint in U.S. District Court for the Southern District of New York, the SEC requested emergency relief noting that because the defendants are foreign entities and placed their trades in overseas accounts, there was a substantial risk that, upon clearance at U.S. brokerage firms, the proceeds of the trades would likely be transferred overseas.

The Honorable P. Kevin Castel, acting as emergency judge, granted the SEC’s requested relief late in the day on July 15. Among other things, the court’s order froze certain assets of the defendants and ordered repatriation of all assets obtained from the trading described in the SEC’s complaint. The court has scheduled a preliminary injunction hearing in this matter for July 25 at 10 a.m. ET. The case has been assigned to the Honorable Denise L. Cote.

The SEC’s investigation was conducted by Assistant Regional Director Silvestre A. Fontes, Assistant Regional Director Sandra Bailey, and Senior Counsel Thomas J. Rappaport with assistance from the Division of Enforcement’s Market Abuse Unit headed by Daniel M. Hawke. The litigation will be conducted by Michael D. Foster. The SEC acknowledges the assistance of the FINRA Office of Fraud Detection and Market Intelligence in its investigation."

SEC ALLEGES THERE WAS A WHITE COLLAR CRIME FAMILY

The following is an excerpt from the SEC website: July 22 , 2011 Securities and Exchange Commission v. Gerald Harold Levine, et al., 2:07-CV-00506 (LDG/RJJ) (District of Nevada, Complaint filed April 17, 2007) Court Enters Judgments Against Las Vegas Husband and Wife For Securities Fraud The Securities and Exchange Commission announced that on July 8, 2011, the U.S. District Court for the District of Nevada entered final judgments against MaryAnn Metz, the former secretary/treasurer and a director of Nu Star Holdings, Inc. (“Nu Star”), and Darin Scott Metz (also known as Damien Metz), her husband, who was president of a related company named Global Environmental Systems, Inc. The Metzes were the only remaining defendants in a pending offering fraud and market manipulation case. The Commission’s complaint, filed on April 17, 2007, alleged that the Metzes and others, including MaryAnn’s parents Gerald and Marie Levine, engaged in a fraudulent scheme to sell approximately $4.5 million worth of shares of Pink Sheet companies, primarily to investors in the United Kingdom, out of boiler rooms in Barcelona, Spain and Santa Ana, California, in violation of the federal securities laws. The complaint also alleged that the Metzes participated in a related market manipulation scheme involving stock of the same Pink Sheet companies, including Nu Star. The Commission alleged that MaryAnn Metz, who was one of two officers and directors of Nu Star, participated in the offering fraud by: (1) failing to disclose that the Levines, who were Nu Star’s majority shareholders, had previously been found liable for committing securities fraud; (2) failing to disclose that the president of Nu Star had been suspended from the practice of law for three years; and (3) failing to disclose to investors the excessive commissions that were paid to the boiler room sales force from the proceeds of the sale of Nu Star stock. The complaint also alleged that both Metzes purchased Nu Star shares in trades that were orchestrated with Gerald Levine and others at increasing prices in order create the illusion that there was a robust and increasing market for Nu Star’s shares, and that the shares had value. Without admitting or denying the Commission’s allegations, except as to jurisdiction, the Metzes consented to the final judgments, which bar them from serving as officers or directors of publicly traded companies. MaryAnn is barred permanently, and Darin is barred for ten years. The final judgments also permanently bar both Metzes from participating in the offering of a penny stock. Additionally, MaryAnn Metz is permanently enjoined from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (“Exchange Act”), while Darin Metz is permanently enjoined from violating Exchange Act Section 10(b) and Rule 10b-5. The final judgments also order Mary Ann Metz to disgorge $172,088, but waive payment and decline to impose penalties against her or Darin Metz based on their financial inability to pay. MaryAnn Metz also consented to the dismissal of her appeal of the order granting the Commission’s motion for summary judgment against her. SEC v. MaryAnn Metz, Case No. 10-17271 (9th Cir.) The Court previously granted the Commission’s motion on summary judgment against Nu Star, the Levines, and Alan Copeland. The Levines’ appeal of that decision is pending. SEC v. Gerald Levine, et al., Case No. 10-16238 (9th Cir.)"

FORMER EXECUTIVE AT PITNEY BOWES IS CHARGED WITH INSIDER TRADING

The following excerpt is from the SEC website:

The Securities and Exchange Commission filed a civil injunctive action today in the United States District Court for the District of Columbia charging Howard B. Wildstein, a former Pitney Bowes, Inc. executive, with insider trading in the stock of MapInfo Corporation in advance of the March 15, 2007 public announcement that Pitney Bowes had entered into a definitive agreement to acquire MapInfo.
According to the SEC's complaint, Wildstein acquired material nonpublic information concerning the acquisition through his employment at Pitney Bowes. In particular, as alleged in the complaint, in late February 2007, Wildstein learned that MapInfo was a potential target of Pitney Bowes and that executives of Pitney Bowes who were responsible for mergers and acquisitions had recently visited MapInfo. On March 1 and March 2, 2007, based on this material nonpublic information, Wildstein purchased 8,000 shares of MapInfo common stock. After the acquisition was publicly announced, Wildstein sold all 8,000 shares, realizing an unlawful profit of $51,177.
Without admitting or denying the allegations in the complaint, Wildstein has consented to the entry of a final judgment that permanently enjoins him from violating Sections 10(b) and 14(e) of the Securities and Exchange Act of 1934, and Rules 10b-5 and 14e-3 thereunder, and requires him to pay a total of $114,848 in disgorgement, prejudgment interest, and civil penalties. The settlement is subject to approval by the court.”

ALLEGED SECURITIES FRAUDSTERS HELD ACCOUNTABLE: MAYBE?

Sometimes those who are found to have committed a crime don't go to prison. In the case below an alleged fraudster does not get much from the actions taken by the SEC however, he may get some prison time from a parallel case that was prosecuted by the U.S. Attorneys Office. Of course the SEC does not have the power to prosecute individuals in a way that leads to prison time like the U.S. Attorneys Office. Only civil penalties can come from the SEC. The following case is an excerpt from the SEC website:

"July 14, 2011
JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DEFENDANTS ROBERT C. BROWN, JR. AND TREBOR COMPANY AND ORDERS INSTITUTING ADMINISTRATIVE PROCEEDINGS, MAKING FINDINGS AND IMPOSING SANCTIONS AGAINST ROBERT C. BROWN, JR.
Securities and Exchange Commission v. Robert C. Brown, Jr., et al., Civil Action No. 3:08-cv-03517-EMC (N.D. Ca.)
The United States Securities and Exchange Commission (“Commission”) announced that on July 1, 2011, the Honorable Edward M. Chen, United States District Court Judge for the Northern District of California, entered judgments of permanent injunction against Defendants Robert C. Brown, Jr. and Trebor Company.

The final judgment against Brown and Trebor Company enjoins them from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and Sections 206(1) and 206(2) of the Investment Advisers of 1940 (“Advisers Act”).

On July 23, 2008, the Commission filed its complaint against the Defendants alleging that they violated the anti-fraud provisions of the federal securities laws by, among other things, offering a variety of investment programs that falsely promised astronomical returns. One program promised, for example, to double investor money in eight months. The complaint also alleged that Brown raised more than $20 million. Instead of investing that money, however, Brown transferred millions of dollars to himself and spent the money on lavish personal expenses.

On April 6, 2010, Brown pleaded guilty to one count of wire fraud in a parallel criminal action brought by the United States Attorney’s Office for the Eastern District of California. Later this year, Brown will be sentenced to prison and ordered to pay restitution to the victims of his fraud.

In addition to the relief described above, Brown consented to the entry of an order, without admitting or denying any of the findings in the Order, except he admitted entry of the injunction and conviction, in a separate Commission administrative proceeding barring him permanently, pursuant to Section 203(f) of the Advisers Act, from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical ratings organization."