81 FR 6088 - Sunshine Act Meeting
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 23 (February 4, 2016)
Federal Register Volume 81, Issue 23 (February 4, 2016)
| Page Range | 6088-6088 | |
| FR Document | 2016-02221 |
[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)] [Notices] [Page 6088] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-02221] ----------------------------------------------------------------------- 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, February 8, 2016, 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 the Respondent, Bernerd Young (``Young''), former chief compliance officer of Stanford Group Company (``SGC''). The law judge found that Young was a cause of violations by SGC of the antifraud provisions of Section 206(2) of the Investment Advisers Act of 1940 through false and misleading statements and omissions in marketing materials for ``certificates of deposit'' issued by Stanford International Bank Ltd., an affiliate of SGC. In addition, the law judge found that Young violated Section 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 connection with statements designed to ``attack'' concerns raised about the certificates of deposit and to ``forestall redemptions and continue sales.'' The law judge further found that Young aided and abetted and caused violations of Exchange Act Section 10(b) and Rule 10b-5, Exchange Act Section 15(c)(1), and Advisers Act Sections 206(1) and (2) in connection with these misrepresentations and omissions. Based on her findings, the law judge issued a cease-and-desist order against Young; barred him from associating with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and prohibited him from serving or acting in certain capacities with respect to an investment company. The law judge also ordered Young to pay $591,992.46 in disgorgement, with prejudgment interest, and assessed a third-tier civil penalty of $260,000. Young appealed the law judge's findings of violation and the sanctions imposed. The issues likely to be considered at oral argument include, among other things, whether Young violated the antifraud provisions as alleged and, if so, the extent to which he should be sanctioned for those violations. For further information, please contact the Office of the Secretary at (202) 551-5400. Dated: February 1, 2016. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-02221 Filed 2-2-16; 11:15 am] BILLING CODE 8011-01-P
![6088 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Notices
available for Web site viewing and 10b–5, Exchange Act Section 15(c)(1), solicit comments on the proposed rule
printing in the Commission’s Public and Advisers Act Sections 206(1) and change from interested persons.
Reference Room, 100 F Street NE., (2) in connection with these
I. Self-Regulatory Organization’s
Washington, DC 20549, on official misrepresentations and omissions.
Statement of the Terms of Substance of
business days between the hours of Based on her findings, the law judge the Proposed Rule Change
10:00 a.m. and 3:00 p.m. Copies of the issued a cease-and-desist order against
filing also will be available for Young; barred him from associating The MSRB filed with the Commission
inspection and copying at the principal with a broker, dealer, investment a proposed rule change consisting of
office of the Exchange. All comments adviser, municipal securities dealer, proposed amendments to Rule A–3, on
received will be posted without change; municipal advisor, transfer agent, or membership on the Board, to lengthen
the Commission does not edit personal nationally recognized statistical rating the term of Board member service,
identifying information from organization; and prohibited him from change the number and size of Board
submissions. You should submit only serving or acting in certain capacities classes, limit the number of consecutive
information that you wish to make with respect to an investment company. terms a Board member can serve,
available publicly. All submissions The law judge also ordered Young to eliminate the requirement that there be
should refer to File Number SR– pay $591,992.46 in disgorgement, with at least one municipal advisor
NYSEARCA–2016–22 and should be prejudgment interest, and assessed a representative per class that is not
submitted on or before February 25, third-tier civil penalty of $260,000. associated with a dealer (‘‘non-dealer
2016. municipal advisor’’), delete an obsolete
Young appealed the law judge’s
For the Commission, by the Division of
findings of violation and the sanctions transition provision and provide a
Trading and Markets, pursuant to delegated technical update to the name of a Board
authority.17 imposed. The issues likely to be
considered at oral argument include, committee (collectively, the ‘‘proposed
Robert W. Errett, rule change’’). The MSRB requests that
among other things, whether Young
Deputy Secretary. the proposed rule change be effective on
violated the antifraud provisions as
[FR Doc. 2016–02063 Filed 2–3–16; 8:45 am]
alleged and, if so, the extent to which the date of Commission approval.
BILLING CODE 8011–01–P
he should be sanctioned for those The text of the proposed rule change
violations. is available on the MSRB’s Web site at
www.msrb.org/Rules-and-
SECURITIES AND EXCHANGE For further information, please
Interpretations/SEC-Filings/2016-
COMMISSION contact the Office of the Secretary at
Filings.aspx, at the MSRB’s principal
(202) 551–5400.
office, and at the Commission’s Public
Sunshine Act Meeting Dated: February 1, 2016. Reference Room.
Notice is hereby given, pursuant to Robert W. Errett,
II. Self-Regulatory Organization’s
the provisions of the Government in the Deputy Secretary.
Statement of the Purpose of, and
Sunshine Act, Public Law 94–409, that [FR Doc. 2016–02221 Filed 2–2–16; 11:15 am]
Statutory Basis for, the Proposed Rule
the Securities and Exchange BILLING CODE 8011–01–P
Change
Commission will hold an Open Meeting
on Monday, February 8, 2016, at 1:00 In its filing with the Commission, the
p.m., in the Auditorium (L–002) at the SECURITIES AND EXCHANGE MSRB included statements concerning
Commission’s headquarters building, to COMMISSION the purpose of and basis for the
hear oral argument in an appeal from an proposed rule change and discussed any
initial decision of an administrative law [Release No. 34–76999; File No. SR–MSRB– comments it received on the proposed
judge by the Respondent, Bernerd 2016–01] rule change. The text of these statements
Young (‘‘Young’’), former chief may be examined at the places specified
compliance officer of Stanford Group Self-Regulatory Organizations; in Item IV below. The MSRB has
Company (‘‘SGC’’). The law judge found Municipal Securities Rulemaking prepared summaries, set forth in
that Young was a cause of violations by Board; Notice of Filing of a Proposed Sections A, B, and C below, of the most
SGC of the antifraud provisions of Rule Change Consisting of Proposed significant aspects of such statements.
Section 206(2) of the Investment Amendments to Rule A–3, on
Advisers Act of 1940 through false and Membership on the Board A. Self-Regulatory Organization’s
misleading statements and omissions in Statement of the Purpose of, and
marketing materials for ‘‘certificates of January 29, 2016. Statutory Basis for, the Proposed Rule
deposit’’ issued by Stanford Pursuant to Section 19(b)(1) of the Change
International Bank Ltd., an affiliate of Securities Exchange Act of 1934 (the 1. Purpose
SGC. In addition, the law judge found ‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
that Young violated Section 17(a) of the 19b–4 thereunder,2 notice is hereby The MSRB is the self-regulatory
Securities Act of 1933 and Section 10(b) given that on January 15, 2016, the organization (‘‘SRO’’) created by
of the Securities Exchange Act of 1934 Municipal Securities Rulemaking Board Congress to establish regulation for the
and Rule 10b–5 thereunder in (the ‘‘MSRB’’ or ‘‘Board’’) filed with the $3.7 trillion municipal securities
connection with statements designed to Securities and Exchange Commission market, including rules governing the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
‘‘attack’’ concerns raised about the (the ‘‘SEC’’ or ‘‘Commission’’) the municipal securities activities of dealers
certificates of deposit and to ‘‘forestall proposed rule change as described in and the municipal advisory activities of
redemptions and continue sales.’’ The Items I, II, and III below, which Items municipal advisors. The MSRB’s
law judge further found that Young have been prepared by the MSRB. The mission is to protect municipal entities,
aided and abetted and caused violations Commission is publishing this notice to obligated persons, investors and the
of Exchange Act Section 10(b) and Rule public interest, and to promote a fair
1 15 U.S.C. 78s(b)(i). and efficient municipal securities
17 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. market. The Board is comprised of 21
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Document Created: 2016-02-04 00:31:33
Document Modified: 2016-02-04 00:31:33
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 6088 |
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