Federal Regulatory Agencies
News releases, reports, statements and associated documents from federal regulatory agencies ranging from the Securities Exchange Commission to the Commodities Futures Trading Commission
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SEC Issues Order Involving Michael Cronin
WASHINGTON, April 23 -- The Securities and Exchange Commission issued the following order (No. 3-19153) instituting the public administrative and cease-and-desist proceedings involving Michael F. Cronin:
I. The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 4C1 and 21C of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 102(e)(1)(iii) of the Commission's Rules of Practice, against Michael F. Cronin, CPA ("Respondent").2
II. In anticipation of the
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WASHINGTON, April 23 -- The Securities and Exchange Commission issued the following order (No. 3-19153) instituting the public administrative and cease-and-desist proceedings involving Michael F. Cronin:
I. The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 4C1 and 21C of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 102(e)(1)(iii) of the Commission's Rules of Practice, against Michael F. Cronin, CPA ("Respondent").2
II. In anticipation of theinstitution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, which are admitted, and except as provided herein in Section V, Respondent consents to the entry of this Order Instituting Public Administrative and Cease and Desist Proceedings Pursuant to Section 4C and 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-And-Desist Order ("Order"), as set forth below.
III. On the basis of this Order and Respondent's Offer, the Commission finds that:
1. Michael F. Cronin, CPA, age 63, of Winter Springs, FL, is a certified public accountant with licenses in New York and Florida. Prior to May 2013, Cronin was the sole proprietor of a registered public accounting firm named Michael F. Cronin, CPA (the "Firm").
2. On May 14, 2013, the PCAOB filed a settled action against Cronin and his Firm, for certain deficiencies in audit work performed between 2007 and 2011 on certain public company engagements (the "PCAOB Order"). The PCAOB Order, which was and is available on its website, censured, fined, and revoked the registration of the Firm and barred Cronin from being an associated person of a registered public accounting firm with the right to file a petition for Board consent to associate with a registered public accounting firm after three years from the date of the PCAOB Order.
3. The PCAOB Order explicitly stated that, pursuant to Section 105(c)(7)(B) of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"), it is "unlawful for any person that is . . . barred from being associated with a registered public accounting firm . . . willfully to become or remain associated with any issuer . . . in an accountancy or financial management capacity . . . without the consent of the [PCAOB] or the Commission."
4. From May 2013 through May 2018, after the PCAOB Order (the "Relevant Time Period"), Cronin continued to perform accountancy or financial management services for eight issuers including, but not limited to, providing general accounting and bookkeeping services; preparing financial statements and the notes to the financial statements; preparing the Management Discussion & Analysis section for a quarterly report that was filed with the Commission; and serving as the intermediary between issuers and their independent auditors.
5. During the Relevant Time Period, Cronin received the following payments for accountancy or financial management work he performed.
View table at https://www.sec.gov/litigation/admin/2019/34-85709.pdf
6. Cronin never requested or received consent from the PCAOB or the Commission to become or remain associated with any issuer in an accountancy or financial management capacity.
7. As a result of the conduct described above, Cronin willfully violated Section 105(c)(7)(B) of Sarbanes-Oxley, which prohibits a person barred from associating with a registered public accounting firm from willfully becoming or remaining associated with an issuer in an accountancy or financial management capacity without consent of the PCAOB or the Commission.
IV. In view of the foregoing, the Commission deems it appropriate to impose the sanctions agreed to in Respondent Cronin's Offer.
Accordingly, it is hereby ORDERED, effective immediately, that:
A. Respondent cease and desist from committing or causing any violations and any future violations of Section105(c)(7)(B) of Sarbanes-Oxley.
B. Respondent is denied the privilege of appearing or practicing before the Commission as an accountant.
C. Respondent shall pay disgorgement of $95,630, prejudgment interest of $12,446 and civil penalties of $42,918, to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3). Payment shall be made in the following installments: $40,000 within ten days of entry of the Order; $36,998 ninety days after entry of the Order; $36,998 180 days after entry of the Order; and approximately $36,998 270 days after entry of the Order. Payments shall be applied first to post order interest, which accrues pursuant to SEC Rule of Practice 600 and pursuant to 31 U.S.C. 3717. Prior to making the final payment set forth herein, Respondent shall contact the staff of the Commission for the amount due. If Respondent fails to make any payment by the date agreed and/or in the amount agreed according to the schedule set forth above, all outstanding payments under this Order, including post-order interest, minus any payments made, shall become due and payable immediately at the discretion of the staff of the Commission without further application to the Commission.
Payment must be made in one of the following ways:
(1) Respondent may transmit payment electronically to the Commission, which
will provide detailed ACH transfer/Fedwire instructions upon request;
(2) Respondent may make direct payment from a bank account via Pay.gov
through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or
(3) Respondent may pay by certified check, bank cashier's check, or United
States postal money order, made payable to the Securities and Exchange
Commission and hand-delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
HQ Bldg., Room 181, AMZ-341
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
Payments by check or money order must be accompanied by a cover letter identifying Michael F. Cronin as a Respondent in these proceedings, and the file number of these proceedings; a copy of the cover letter and check or money order must be sent to Melissa Hodgman, Division of Enforcement, Securities and Exchange Commission, 100 F St., NE, Washington, DC 20549.
D. Amounts ordered to be paid as civil money penalties pursuant to this Order shall be treated as penalties paid to the government for all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, Respondent agrees that in any Related Investor Action, he shall not argue that he is entitled to, nor shall he benefit by, offset or reduction of any award of compensatory damages by the amount of any part of Respondent's payment of a civil penalty in this action ("Penalty Offset"). If the court in any Related Investor Action grants such a Penalty Offset, Respondent agrees that he shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission's counsel in this action and pay the amount of the Penalty Offset to the Securities and Exchange Commission. Such a payment shall not be deemed an additional civil penalty and shall not be deemed to change the amount of the civil penalty imposed in this proceeding. For purposes of this paragraph, a "Related Investor Action" means a private damages action brought against Respondent by or on behalf of one or more investors based on substantially the same facts as alleged in the Order instituted by the Commission in this proceeding.
V. It is further Ordered that, solely for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. *523, the findings in this Order are true and admitted by Respondent, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Respondent under this Order or any other judgment, order, consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Respondent of the federal securities laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. *523(a)(19).
By the Commission.
Vanessa A. Countryman
Acting Secretary
SEC Issues Order Involving Manna Capital, MCA Holdings, QMI Seismic
WASHINGTON, April 23 -- The Securities and Exchange Commission issued the following order (Case No. 3-18695) to show cause involving Manna Capital, MCA Holdings and QMI Seismic:
The Securities and Exchange Commission ("Commission") issued an Order Instituting Proceedings ("OIP") on August 29, 2018, pursuant to Section 12(j) of the Securities Exchange Act of 1934, against respondents Manna Capital, Inc., MCA Holdings Corp., and QMI Seismic, Inc.1 On November 30, 2018, an order to show cause why they should not be held in default was issued as to Manna Capital, Inc., and QMI Seismic, Inc.2 That
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WASHINGTON, April 23 -- The Securities and Exchange Commission issued the following order (Case No. 3-18695) to show cause involving Manna Capital, MCA Holdings and QMI Seismic:
The Securities and Exchange Commission ("Commission") issued an Order Instituting Proceedings ("OIP") on August 29, 2018, pursuant to Section 12(j) of the Securities Exchange Act of 1934, against respondents Manna Capital, Inc., MCA Holdings Corp., and QMI Seismic, Inc.1 On November 30, 2018, an order to show cause why they should not be held in default was issued as to Manna Capital, Inc., and QMI Seismic, Inc.2 Thatorder also directed the Division of Enforcement to remedy an issue regarding service of the OIP on MCA Holdings Corp.3
On December 10, 2018, the Division of Enforcement filed the Supplemental Declaration of Neil Welch, Jr., which stated that, pursuant to Rule 141(a)(2)(ii) of the Commission's Rules of Practice,4 service of the OIP was made on MCA Holdings Corp. on December 10, 2018.
As stated in the OIP, the answer of respondent MCA Holdings Corp. was required to be filed within ten days of service of the OIP.5 As of the date of this order, MCA Holdings Corp. has not filed an answer. The prehearing conference and the hearing are thus continued indefinitely with respect to MCA Holdings Corp.
Accordingly, respondent MCA Holdings Corp. is ORDERED to SHOW CAUSE by May 7, 2019, why the registration of its securities should not be revoked by default due to its failure to file an answer and to otherwise defend this proceeding. When a party defaults, the allegations in the OIP will be deemed to be true and the Commission may determine the proceeding against that party upon consideration of the record without holding a public hearing.
If respondent MCA Holdings Corp. fails to respond to this order to show cause, it may be deemed in default, the proceeding may be determined against it, and the registration of its securities may be revoked.6 Upon review of the filing in response to this order, the Commission will either direct further proceedings by subsequent order or issue a final order resolving the matter.
For the Commission, by the Office of the General Counsel, pursuant to delegated authority.
Vanessa A. Countryman
Acting Secretary
* * *
1. Manna Capital, Inc., Exchange Act Release No. 83985, 2018 WL 4103633 (Aug. 29, 2018).
2. Manna Capital, Inc., Exchange Act Release No. 84705, 2018 WL 6266225 (Nov. 30, 2018). Manna Capital and QMI Seismic did not respond to the show cause order, and the Commission subsequently found them in default, deemed the allegations of the OIP true as to them, and revoked the registration of each class of their registered securities. Manna Capital, Inc., Exchange Act Release No. 85529, 2019 WL 1529567, at *1 (Apr. 5, 2019).
3. 2018 WL 6266225, at *1 n.3 (explaining that service of the OIP was made at an address with an incorrect suite number and directing the Division of Enforcement "to ensure that service is made on MCA Holdings Corp. at the correct, complete address and to file another declaration of service in this proceeding once that has been accomplished").
4. 17 C.F.R. * 201.141(a)(2)(ii).
5. Rules of Practice 151(a), 160(b), 220(b), 17 C.F.R. ** 201.151(a), .160(b), .220(b).
6 Rules of Practice 155, 180, 17 C.F.R. ** 201.155, .180; see Manna Capital, 2018 WL 4103633, at *3 ("If Respondents fail to file the directed Answers, . . . [they] may be deemed in default and the proceedings may be determined against them . . . .").
SEC Issues Order Involving Charter Capital Management, Steven Morris Bruce
WASHINGTON, April 23 -- The Securities and Exchange Commission issued the following order (No. 3-19152) instituting the public administrative and cease-and-desist proceedings involving Charter Capital Management and Steven Morris Bruce:
I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 ("Advisers Act") against Charter Capital Management, LLC ("CCM") and Steven Morris
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WASHINGTON, April 23 -- The Securities and Exchange Commission issued the following order (No. 3-19152) instituting the public administrative and cease-and-desist proceedings involving Charter Capital Management and Steven Morris Bruce:
I. The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 ("Advisers Act") against Charter Capital Management, LLC ("CCM") and Steven MorrisBruce ("Bruce") (collectively "Respondents").
II. In anticipation of the institution of these proceedings, Respondents have submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over them and the subject matter of these proceedings, which are admitted, and except as provided herein in Section V, Respondents consent to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order ("Order"), as set forth below.
III. On the basis of this Order and Respondents' Offer, the Commission finds1 that:
SUMMARY
1. This matter involves formerly SEC-registered investment adviser CCM and its principal's investment of $4 million on behalf of two funds they managed. In mid-August 2016, CCM and its founder and chief executive officer Bruce made a $4 million loan on behalf of the two funds to a Norwegian individual and his company, who purported to use the proceeds to engage in trading international notes for huge profits. The Norwegian individual and his entity promised the funds would receive payment of $40 million in 90 days. The Norwegian company made an initial payment of $1.5 million, but never paid the remaining $38.5 million it promised - leaving the funds with a loss of $2.5 million.
2. CCM and Bruce performed limited due diligence on the investment, and then in early August 2016 Bruce made a $115,000 loan of his own personal money to the Norwegian individual and his company. CCM and Bruce failed to disclose a conflict of interest arising out of Bruce's status, through his personal loan, as a creditor of the Norwegian individual and the Norwegian individual's company. Also, after making the $4 million investment on behalf of the two funds, CCM and Bruce made misleading statements to fund investors regarding the amount of due diligence performed and the "buy-in" of CCM's outside professionals.
3. As a result, CCM and Bruce negligently breached their fiduciary duties to the funds in violation of Section 206(2) of the Advisers Act by failing to disclose that Bruce was a creditor of the Norwegian individual and his company and the resulting conflict of interest, i.e., that Bruce had an incentive for the funds to invest so that it would provide money that could be used to repay Bruce personally. CCM and Bruce also negligently violated Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder through misleading statements to fund investors about the level of due diligence performed on the investment and the "buy-in" of CCM's outside professionals.
RESPONDENTS AND OTHER RELEVANT ENTITES
Respondents
4. CCM is a Florida limited liability company, with its principal place of business in Freeport, Florida. CCM is an investment adviser that was registered with the Commission (File No. 801-62634) from January 2004 to November 2017. CCM serves as the investment manager to two private funds, Charter Capital Fund I L.P. ("Fund I") and Charter Capital Fund II L.P. ("Fund II) (collectively, the "Funds"). CCM filed a Form ADV-W to withdraw its registration on November 2, 2017. CCM's registration was terminated on November 2, 2017. CCM has been registered as an investment adviser with the Florida Office of Financial Regulation since October 17, 2017.
5. Bruce, age 60, resides in Freeport, Florida. He is the founder, sole owner/managing member, chief executive officer, and chief compliance officer of CCM.
Other Relevant Entities
6. Charter Capital GP, LLC ("CCGP"), a Florida limited liability company, serves as the general partner of certain affiliated, unregistered investment companies. CCGP serves as the Funds' general partner.
7. Fund I, is a private fund formed in 2009 and exempt from registration pursuant to Section 3(c)(1) under the Investment Company Act of 1940 ("Investment Company Act").
8. Fund II, is a private fund formed in 2009 and exempt from registration pursuant to Section 3(c)(1) under the Investment Company Act.
FACTS
Background
9. CCM and Bruce are investment advisers to two private funds--Fund I and Fund II. CCGP serves as the Funds' general partner. Fund I is open to taxable investments (i.e., non-qualified) and Fund II is only open to qualified (i.e., IRA and Roth IRA) investments. The private placement memoranda ("PPM") for the Funds permits CCM to "pursue any objectives, employ any investment techniques or purchase any type of security that it considers appropriate and in the best interests of the Fund[s]."
The Funds' Investment
10. Bruce was introduced to the Norwegian individual by a mutual associate. During approximately late July 2016 and early August 2016, Bruce participated in approximately 30 telephone calls (totaling approximately four to five hours) with the Norwegian individual to discuss the Norwegian individual's investment strategy before investing the Funds' $4 million. Bruce also performed some Google searches on the Norwegian individual online and learned that the Norwegian individual supposedly owned an oil and gas trading operation in Atlanta, Georgia under a company name that the Norwegian individual had referenced in an email to Bruce.
11. On August 18, 2016, the Funds and Bruce, as Manager of CCGP on behalf of the Funds, entered into a "loan agreement" providing that that the Funds would loan the Norwegian individual and his company $4 million - $2,258,575 from Fund I and $1,741,425 from Fund II. CCM, as the investment manager to the Funds, and Bruce, as the sole owner and control person of CCM, caused the Funds to enter into the loan agreement with the Norwegian individual and his company. According to the loan agreement, the $4 million was to be utilized:
to pay for costs related to completing the trading contract signed between [the Norwegian individual] and a trading platform being paid back profits for aiding in setting up a trade for a minimum of one [standby letter of credit] for 700 million Euros to be monetized and traded.
12. Bruce understood from the telephone conversations with the Norwegian individual, whom Bruce had never met in person, that the Norwegian individual had traders he worked with who would use the $4 million to trade international notes and make huge profits. The loan documents provided that the funds would receive a $40 million payment of interest on the $4 million loan in 90 days.
Bruce's Personal Investment
13. Bruce invested personally first, before investing the Funds' monies. On August 1, 2016, Bruce entered into a loan agreement to personally loan $100,000 (later amended to $115,000) to the Norwegian individual and his company similar to the loan agreement that the Funds later entered into. Under Bruce's personal loan agreement, the Norwegian individual and his company promised to repay Bruce $1,115,000 in 25 days. When the payment came due on August 26, Bruce agreed to the Norwegian individual's suggestion to roll the purported proceeds from that investment forward into another transaction with the Norwegian individual and his company. CCM and Bruce never disclosed to the Funds or the Funds' investors the fact that Bruce had made a personal loan to the Norwegian individual and his company.
14. Between December 2016 and April 2017, Bruce was repaid a total of $233,000 on his personal investment, for a profit of $118,000 on his initial $115,0000 investment. In November 2017, Bruce paid $184,540 of his own money to the Funds to partly cover the Funds' loss of $2.5 million resulting from the investment. This payment represented the profit that Bruce recovered on his personal investment and an additional $66,540.
Misleading Statements After the Loan
15. CCM and Bruce made materially misleading statements about the Norwegian loan agreement to the Funds' investors after investing their monies.
Due Diligence
16. First, in a newsletter emailed to Fund investors on September 8, 2016, Bruce inaccurately stated that he had "spent a great deal of time doing my diligence on the investment strategy and [the Norwegian individual's] credentials." Bruce's due diligence consisted solely of the telephone calls with the Norwegian individual, a few Google searches, and calls to CCM's attorneys, accounting firm ("CPA firm"), and the Funds' administrator (who cautioned Bruce about the investment as set forth below). Accordingly, CCM and Bruce's statements about due diligence were misleading.
"Buy-in" of Outside Professionals
17. Second, in an investor letter dated September 13, 2016, Bruce inaccurately told investors that CCM and Bruce had the "buy-in" of CCM's attorneys, its CPA firm, and the administrator for the Funds prior to making the $4 million investment. More specifically, Bruce stated that he and the Norwegian individual had been working with those outside professionals for the last two months to bring them up to speed on the investment strategy and that he had "obtained the buy-in [of the law firm, CPA firm, and fund administrator] in early August." Yet, none of CCM's outside professionals had endorsed the Norwegian investment or affirmed its legitimacy. In fact, the outside professionals raised concerns with Bruce about the investment. CCM and Bruce did not provide the attorney with a copy of the loan agreement nor did they tell the attorney about the investment's promised rate of return in advance of CCM and Bruce making the Funds' $4 million investment. CCM and Bruce provided the engagement partner at CCM's CPA firm with a copy of the loan agreement two days prior to making the investment. In response, the engagement partner had a call with Bruce and questioned the investment. Two days prior to CCM and Bruce making the $4 million investment, a Senior Vice President ("SVP") from the Funds' administrator participated in a call with Bruce and the Norwegian individual to learn more about the proposed investment. After the call, the SVP immediately called Bruce back and told Bruce that he thought Bruce should conduct additional due diligence on the investment and should talk to others in Bruce's field to get their take on the investment. Accordingly, CCM and Bruce's statements about "buy-in" of their outside professionals were misleading.
VIOLATIONS
18. As a result of the conduct described above, Respondents willfully2 violated Section 206(2) of the Advisers Act.
19. As a result of the conduct described above, Respondents willfully violated Section 206(4) of the Advisers Act and Rule 206(4)-8 promulgated thereunder.
REMEDIAL EFFORTS
20. In determining to accept Respondents' Offer, the Commission considered that Bruce voluntarily disgorged $184,540 of his own money to the Funds in November 2017, to partly cover the Funds' loss, which represents $66,540 in excess of the $118,000 profit that Bruce made on his own personal investment with the Norwegian individual and his company.
UNDERTAKING
21. Respondents CCM and Bruce have undertaken to:
22. Notice to Advisory Clients. Within thirty (30) days of the entry of this Order, Respondents shall provide a copy of the Order to each of CCM's existing advisory clients as of the entry of this Order via mail, e-mail, or such other method as may be acceptable to the Commission staff, together with a cover letter in a form not unacceptable to the Commission staff. For a period of one (1) year, Respondents shall provide a copy of the Order to all of its prospective clients.
23. Certifications of Compliance. Respondents shall certify, in writing, compliance with the undertaking set forth above. The certification shall identify the undertaking, provide written evidence of compliance in the form of a narrative, and be supported by exhibits sufficient to demonstrate compliance. The Commission staff may make reasonable requests for further evidence of compliance, and Respondents agree to provide such evidence. The certification and supporting material shall be submitted to Elisha L. Frank, Assistant Regional Director, 801 Brickell Avenue, Suite 1800, Miami, Florida, 33131, with a copy to the Office of Chief Counsel of the Enforcement Division, no later than sixty (60) days from the date of the completion of the undertaking.
IV. In view of the foregoing, the Commission deems it appropriate, in the public interest to impose the sanctions agreed to in Respondents' Offer.
Accordingly, pursuant to Sections 203(e), 203(f) and 203(k) of the Advisers Act, it is hereby ORDERED that:
A. Respondents cease and desist from committing or causing any violations and any future violations of Sections 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 promulgated thereunder.
B. Respondents are censured.
C. Respondents shall, jointly and severally, pay a civil money penalty of $40,000.00 plus post-order interest pursuant to 31 U.S.C. * 3717, to the Securities and Exchange Commission. Payment shall be made in the following installments:
1) $15,000 within 14 days of the entry of the Order;
2) $5,000 within 56 days of the entry of the Order;
3) $5,000 within 84 days of the entry of the Order;
4) $5,000 within 112 days of the entry of the Order;
5) $5,000 within 140 days of the entry of the Order;
6) $5,000 within 168 days of the entry of the Order.
Prior to making the final payment set forth herein, Respondents CCM and Bruce shall contact the staff of the Commission for the amount due for the final payment. If any payment is not made by the date the payment is required by this Order, the entire outstanding balance of civil penalties, plus any additional interest accrued pursuant to 31 U.S.C. * 3717, shall be due and payable immediately, without further application.
Payment must be made in one of the following ways:
(1) Respondents may transmit payment electronically to the Commission, which will provide detailed ACH transfer/Fedwire instructions upon request;
(2) Respondents may make direct payment from a bank account via Pay.gov through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or
(3) Respondents may pay by certified check, bank cashier's check, or United States postal money order, made payable to the Securities and Exchange Commission and hand-delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
HQ Bldg., Room 181, AMZ-341
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
Payments by check or money order must be accompanied by a cover letter identifying CCM and Bruce as Respondents in these proceedings, and the file number of these proceedings; a copy of the cover letter and check or money order must be sent to Glenn S. Gordon, Associate Regional Director, Division of Enforcement, U.S. Securities and Exchange Commission, 801 Brickell Avenue, Suite 1800, Miami, Florida, 33131.
D. Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, a Fair Fund is created for the penalties referenced in paragraph IV.C above. Amounts ordered to be paid as civil money penalties pursuant to this Order shall be treated as penalties paid to the government for all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, Respondents agree that in any Related Investor Action, they shall not argue that they are entitled to, nor shall they benefit by, offset or reduction of any award of compensatory damages by the amount of any part of Respondents' payment of a civil penalty in this action ("Penalty Offset"). If the court in any Related Investor Action grants such a Penalty Offset, Respondents agree that they shall, within 30 days after entry of a final order granting the Penalty Offset, notify the Commission's counsel in this action and pay the amount of the Penalty Offset to the Securities and Exchange Commission. Such a payment shall not be deemed an additional civil penalty and shall not be deemed to change the amount of the civil penalty imposed in this proceeding. For purposes of this paragraph, a "Related Investor Action" means a private damages action brought against one or both Respondents by or on behalf of one or more investors based on substantially the same facts as alleged in the Order instituted by the Commission in this proceeding.
E. Respondents shall comply with the undertaking enumerated in paragraphs 21-23 above.
V. It is further Ordered that, solely for purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. *523, the findings in this Order are true and admitted by Respondent Bruce, and further, any debt for disgorgement, prejudgment interest, civil penalty or other amounts due by Respondent Bruce under this Order or any other judgment, order, consent order, decree or settlement agreement entered in connection with this proceeding, is a debt for the violation by Respondent Bruce of the federal securities laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C. *523(a)(19).
By the Commission.
Vanessa A. Countryman
Acting Secretary
NRC to Hold Open House to Discuss 2018 Performance of Fermi Nuclear Power Plant
WASHINGTON, April 23 -- The Nuclear Regulatory Commission issued the following news release:
Nuclear Regulatory Commission staff will discuss the 2018 safety performance of the Fermi Power Plant, operated by DTE Energy Company during an open house on April 30, in Monroe, Mich.
The open house, which will be held at the Monroe County Courthouse, the Board of Commissioners Chambers, 125 E. Second St., will run from 6-7 p.m., EDT. NRC employees responsible for plant inspections, including the resident inspectors based full-time at the site, will be available to discuss the plant's performance.
Fermi
... Show Full Article
WASHINGTON, April 23 -- The Nuclear Regulatory Commission issued the following news release:
Nuclear Regulatory Commission staff will discuss the 2018 safety performance of the Fermi Power Plant, operated by DTE Energy Company during an open house on April 30, in Monroe, Mich.
The open house, which will be held at the Monroe County Courthouse, the Board of Commissioners Chambers, 125 E. Second St., will run from 6-7 p.m., EDT. NRC employees responsible for plant inspections, including the resident inspectors based full-time at the site, will be available to discuss the plant's performance.
Fermioperated safely during 2018. At the end of the year, all inspection findings and performance indicators were of very low safety significance. As a result, it remains under the NRC's normal level of oversight, which entails thousands of hours of inspection each year.
The NRC Reactor Oversight Process uses color-coded inspection findings and indicators to measure plant performance. The colors start at green and increase to white, yellow or red, commensurate with the safety significance of the issues involved. Inspection findings or performance indicators with more than very low safety significance trigger increased NRC oversight.
Inspections are performed by two NRC resident inspectors and inspection specialists from the Region III office located in Lisle, Ill.
The annual assessment letter for Fermi as well as the notice for the open house, are available on the NRC website (https://www.nrc.gov/). Current performance information is also available. (https://www.nrc.gov/reactors/operating/oversight/docket-chart.html?docket=FERM2&quarter=2018Q4)
NRC Receives Event Notification Involving Vogtle Power Reactor in Georgia
WASHINGTON, April 23 -- The Nuclear Regulatory Commission issued the following event notification (No. 54017) involving Vogtle power reactor in Georgia:
CONTRACT SUPERVISOR TEST POSITIVE FOR DRUGS ON A FOLLOW-UP TEST
A contract supervisor tested positive for drugs on a follow-up fitness-for-duty test. The contractor's access to the facility has been revoked and his badge was confiscated. Additionally, the supervisor failed a random test administered the next day (see EN #54018).
The licensee notified the NRC Resident Inspector.
Power Reactor
Facility: VOGTLE
Region: 2
State: GA
Unit:
... Show Full Article
WASHINGTON, April 23 -- The Nuclear Regulatory Commission issued the following event notification (No. 54017) involving Vogtle power reactor in Georgia:
CONTRACT SUPERVISOR TEST POSITIVE FOR DRUGS ON A FOLLOW-UP TEST
A contract supervisor tested positive for drugs on a follow-up fitness-for-duty test. The contractor's access to the facility has been revoked and his badge was confiscated. Additionally, the supervisor failed a random test administered the next day (see EN #54018).
The licensee notified the NRC Resident Inspector.
Power Reactor
Facility: VOGTLE
Region: 2
State: GA
Unit:[3] [4] []
RX Type: [3] W-AP1000,[4] W-AP1000
NRC Notified By: LINDSEY GRISSOM
HQ OPS Officer: HOWIE CROUCH
Emergency Class: NON EMERGENCY
10 CFR Section:
26.719 - FITNESS FOR DUTY
Event Number: 54017
Notification Date: 04/22/2019
Notification Time: 16:16 [ET]
Event Date: 04/22/2019
Event Time: 11:30 [EDT]
Last Update Date: 04/22/2019
Person (Organization):
FRANK EHRHARDT (R2DO)
FFD GROUP (EMAIL)
NRC Receives Event Notification Involving Byron Power Reactor in Illinois
WASHINGTON, April 23 -- The Nuclear Regulatory Commission issued the following event notification (No. 54020) involving Byron power reactor in Illinois:
MANUAL INITIATION OF THE AUXILIARY FEEDWATER SYSTEM IN RESPONSE TO A LOSS OF FEEDWATER
"At 1324 CDT, on 4/22/2019, with unit 2 in Mode 3 at 0 percent power, an intentional manual initiation of the Auxiliary Feedwater System occurred in response to a loss of feedwater condition. The loss of feedwater condition occurred after the non-safety related Startup Feedwater Pump was secured due to high bearing temperatures. The A Train Auxiliary Feedwater
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WASHINGTON, April 23 -- The Nuclear Regulatory Commission issued the following event notification (No. 54020) involving Byron power reactor in Illinois:
MANUAL INITIATION OF THE AUXILIARY FEEDWATER SYSTEM IN RESPONSE TO A LOSS OF FEEDWATER
"At 1324 CDT, on 4/22/2019, with unit 2 in Mode 3 at 0 percent power, an intentional manual initiation of the Auxiliary Feedwater System occurred in response to a loss of feedwater condition. The loss of feedwater condition occurred after the non-safety related Startup Feedwater Pump was secured due to high bearing temperatures. The A Train Auxiliary FeedwaterPump was started per procedure. The Auxiliary Feedwater System started and operated as designed following intentional manual initiation.
"This event is being reported in accordance with 10 CFR 50.72(b)(3)(iv)(A) as an event that results in a valid actuation of the Auxiliary Feedwater System.
"There was no impact on the health and safety of the public or plant personnel. The NRC Resident Inspector has been notified."
Power Reactor
Facility: BYRON
Region: 3
State: IL
Unit: [] [2] []
RX Type: [1] W-4-LP,[2] W-4-LP
NRC Notified By: BRIAN LEWIN
HQ OPS Officer: JEFF HERRERA
Emergency Class: NON EMERGENCY
10 CFR Section:
50.72(b)(3)(iv)(A) - VALID SPECIF SYS ACTUATION
Event Number: 54020
Notification Date: 04/22/2019
Notification Time: 20:41 [ET]
Event Date: 04/22/2019
Event Time: 13:24 [CDT]
Last Update Date: 04/22/2019
Person (Organization):
DARIUSZ SZWARC (R3DO)
ITC Receives Complaint From Dried Tart Cherry Trade Committee
WASHINGTON, April 23 -- The U.S. International Trade Commission received the following complaint (Docket No. 3381):
Commodity: Dried Tart Cherries
Investigation Number: 701-TA-622 and 731-TA-1448
Filed By: Elizabeth Drake
Firm/Organization: Schagrin Associates
Behalf Of: Dried Tart Cherry Trade Committee
Confidential: Yes
Country: Turkey
Description: Letter to Lisa R. Barton, Secretary, USITC; requesting that the Commission conduct an investigation under sections 701 & 731 of the Tariff Act of 1930 regarding the Imposition of Countervailing and Antidumping Duties on Dried Tart Cherries
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WASHINGTON, April 23 -- The U.S. International Trade Commission received the following complaint (Docket No. 3381):
Commodity: Dried Tart Cherries
Investigation Number: 701-TA-622 and 731-TA-1448
Filed By: Elizabeth Drake
Firm/Organization: Schagrin Associates
Behalf Of: Dried Tart Cherry Trade Committee
Confidential: Yes
Country: Turkey
Description: Letter to Lisa R. Barton, Secretary, USITC; requesting that the Commission conduct an investigation under sections 701 & 731 of the Tariff Act of 1930 regarding the Imposition of Countervailing and Antidumping Duties on Dried Tart Cherriesfrom Turkey.
Status Dropdown: Instituted
