80_FR_64242 80 FR 64038 - Sunshine Act Meeting

80 FR 64038 - Sunshine Act Meeting

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 204 (October 22, 2015)

Page Range64038-64038
FR Document2015-26972

Federal Register, Volume 80 Issue 204 (Thursday, October 22, 2015) 
[Federal Register Volume 80, Number 204 (Thursday, October 22, 2015)]
[Notices]
[Page 64038]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26972]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Public Law 94-409, that the Securities 
and Exchange Commission will hold an Open Meeting on Monday, October 
26, 2015, at 1:00 p.m., in the Auditorium (L-002) at the Commission's 
headquarters building, to hear oral argument in an appeal from an 
initial decision of an administrative law judge by Respondents ZPR 
Investment Management, Inc. (``ZPRIM''), and Max E. Zavanelli 
(``Zavanelli'').
    On May 27, 2014, the law judge found that ZPRIM violated Sections 
206(1), (2), and (4) of the Investment Advisers Act of 1940 and 
Advisers Act Rule 206(4)-1(a)(5), by misrepresenting compliance with 
the Global Investment Performance Standards (``GIPS'') in magazine 
advertisements and investment report newsletters. The initial decision 
also found that Zavanelli aided, abetted, and caused, and was primarily 
liable under Sections 206(1) and (2) for, each of ZPRIM's violations 
based on these misrepresentations.
    In addition, the law judge found that ZPRIM violated Sections 
206(2) and (4) and Rule 206(4)-1(a)(5) by negligently claiming in a 
Morningstar report for the period ended September 30, 2010 that (a) an 
independent third party had verified ZPRIM's compliance with GIPS ``to 
the present,'' and (b) ZPRIM was not under Commission investigation, 
although neither of these things was true. The law judge also found 
that ZPRIM violated Sections 206(1), (2), and (4) and Rule 206(4)-
1(a)(5) by repeating its false claim that it was not under Commission 
investigation in a Morningstar report for the period ended March 31, 
2011. The initial decision found that Zavanelli caused each of ZPRIM's 
Morningstar violations but did not aid and abet them.
    For these violations, the law judge barred Zavanelli from 
association with any investment adviser, broker, dealer, municipal 
securities dealer, municipal advisor, transfer agent, or nationally 
recognized statistical rating organization; ordered ZPRIM to cease and 
desist from committing, and Zavanelli to cease and desist from 
committing, aiding, abetting, or causing the commission of, any 
violations or future violations of Advisers Act Sections 206(1), (2), 
and (4) and Rule 206(4)-1(a)(5); and imposed civil money penalties of 
$250,000 on ZPRIM and $660,000 on Zavanelli.
    Respondents appealed the initial decision's findings of violation 
and the sanctions imposed. The issues likely to be considered at oral 
argument include, among other things, whether Respondents violated the 
antifraud provisions as alleged and, if so, what sanction, if any, is 
appropriate in the public interest.
    For further information, please contact the Office of the Secretary 
at (202) 551-5400.

    Dated: October 19, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-26972 Filed 10-20-15; 11:15 am]
BILLING CODE 8011-01-P

64038 Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Notices order flow to competing venues. In such All submissions should refer to File On May 27, 2014, the law judge found an environment, the Exchange must Number SR–ISE–2015–32. This file that ZPRIM violated Sections 206(1), (2), continually review, and consider number should be included on the and (4) of the Investment Advisers Act adjusting, its fees to remain competitive subject line if email is used. To help the of 1940 and Advisers Act Rule 206(4)– with other exchanges. For the reasons Commission process and review your 1(a)(5), by misrepresenting compliance described above, the Exchange believes comments more efficiently, please use with the Global Investment Performance that the proposed fee change reflects only one method. The Commission will Standards (‘‘GIPS’’) in magazine this competitive environment. post all comments on the Commission’s advertisements and investment report Internet Web site (http://www.sec.gov/ newsletters. The initial decision also C. Self-Regulatory Organization’s rules/sro.shtml). Copies of the found that Zavanelli aided, abetted, and Statement on Comments on the submission, all subsequent caused, and was primarily liable under Proposed Rule Change Received From amendments, all written statements Sections 206(1) and (2) for, each of Members, Participants or Others with respect to the proposed rule ZPRIM’s violations based on these The Exchange has not solicited, and change that are filed with the misrepresentations. does not intend to solicit, comments on Commission, and all written In addition, the law judge found that this proposed rule change. The communications relating to the ZPRIM violated Sections 206(2) and (4) Exchange has not received any proposed rule change between the and Rule 206(4)–1(a)(5) by negligently unsolicited written comments from Commission and any person, other than claiming in a Morningstar report for the members or other interested parties. those that may be withheld from the period ended September 30, 2010 that III. Date of Effectiveness of the public in accordance with the (a) an independent third party had Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be verified ZPRIM’s compliance with GIPS Commission Action available for Web site viewing and ‘‘to the present,’’ and (b) ZPRIM was not printing in the Commission’s Public under Commission investigation, The foregoing rule change has become Reference Room, 100 F Street NE., although neither of these things was effective pursuant to Section Washington, DC 20549 on official true. The law judge also found that 19(b)(3)(A)(ii) of the Act,9 and business days between the hours of ZPRIM violated Sections 206(1), (2), and subparagraph (f)(2) of Rule 19b–4 10:00 a.m. and 3:00 p.m. Copies of such (4) and Rule 206(4)–1(a)(5) by repeating thereunder,10 because it establishes a filing also will be available for its false claim that it was not under due, fee, or other charge imposed by inspection and copying at the principal Commission investigation in a ISE. office of the Exchange. All comments Morningstar report for the period ended At any time within 60 days of the received will be posted without change; March 31, 2011. The initial decision filing of such proposed rule change, the the Commission does not edit personal found that Zavanelli caused each of Commission summarily may identifying information from ZPRIM’s Morningstar violations but did temporarily suspend such rule change if submissions. You should submit only not aid and abet them. it appears to the Commission that such information that you wish to make For these violations, the law judge action is necessary or appropriate in the available publicly. All submissions barred Zavanelli from association with public interest, for the protection of should refer to File Number SR–ISE– any investment adviser, broker, dealer, investors, or otherwise in furtherance of 2015–32 and should be submitted by municipal securities dealer, municipal the purposes of the Act. If the November 12, 2015. advisor, transfer agent, or nationally Commission takes such action, the For the Commission, by the Division of recognized statistical rating Commission shall institute proceedings Trading and Markets, pursuant to delegated organization; ordered ZPRIM to cease to determine whether the proposed rule authority.11 and desist from committing, and should be approved or disapproved. Brent J. Fields, Zavanelli to cease and desist from IV. Solicitation of Comments Secretary. committing, aiding, abetting, or causing Interested persons are invited to [FR Doc. 2015–26806 Filed 10–21–15; 8:45 am] the commission of, any violations or submit written data, views, and BILLING CODE 8011–01–P future violations of Advisers Act arguments concerning the foregoing, Sections 206(1), (2), and (4) and Rule including whether the proposed rule 206(4)–1(a)(5); and imposed civil money change is consistent with the Act. SECURITIES AND EXCHANGE penalties of $250,000 on ZPRIM and Comments may be submitted by any of COMMISSION $660,000 on Zavanelli. the following methods: Respondents appealed the initial Sunshine Act Meeting decision’s findings of violation and the Electronic Comments sanctions imposed. The issues likely to • Use the Commission’s Internet Notice is hereby given, pursuant to be considered at oral argument include, comment form (http://www.sec.gov/ the provisions of the Government in the among other things, whether rules/sro.shtml); or Sunshine Act, Public Law 94–409, that Respondents violated the antifraud • Send an email to rule-comments@ the Securities and Exchange provisions as alleged and, if so, what sec.gov. Please include File No. SR–ISE– Commission will hold an Open Meeting sanction, if any, is appropriate in the 2015–32 on the subject line. on Monday, October 26, 2015, at 1:00 public interest. p.m., in the Auditorium (L–002) at the For further information, please Paper Comments Commission’s headquarters building, to contact the Office of the Secretary at tkelley on DSK3SPTVN1PROD with NOTICES • Send paper comments in triplicate hear oral argument in an appeal from an (202) 551–5400. to Secretary, Securities and Exchange initial decision of an administrative law judge by Respondents ZPR Investment Dated: October 19, 2015. Commission, 100 F Street NE., Management, Inc. (‘‘ZPRIM’’), and Max Brent J. Fields, Washington, DC 20549–1090. E. Zavanelli (‘‘Zavanelli’’). Secretary. 9 15 U.S.C. 78s(b)(3)(A)(ii). [FR Doc. 2015–26972 Filed 10–20–15; 11:15 am] 10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). BILLING CODE 8011–01–P VerDate Sep<11>2014 18:05 Oct 21, 2015 Jkt 238001 PO 00000 Frm 00082 Fmt 4703 Sfmt 9990 E:\FR\FM\22OCN1.SGM 22OCN1


Document Created: 2015-12-14 15:34:09
Document Modified: 2015-12-14 15:34:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 64038 
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