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
Featured Stories
SEC Charges Real Estate Company and Executives With Defrauding Retail Investors, Obtains Emergency Relief
WASHINGTON, Feb. 19 -- The Securities and Exchange Commission issued the following news release:
The Securities and Exchange Commission announced an emergency enforcement action and a temporary restraining order and asset freeze against Florida-based private real estate firm EquiAlt LLC, its CEO Brian Davison, and its Managing Director Barry Rybicki, in connection with an allegedly fraudulent unregistered securities offering that raised more than $170 million from at least 1,100 investors, a number of whom invested their retirement funds.
According to the SEC's complaint, unsealed Feb. 14, 2020,
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WASHINGTON, Feb. 19 -- The Securities and Exchange Commission issued the following news release:
The Securities and Exchange Commission announced an emergency enforcement action and a temporary restraining order and asset freeze against Florida-based private real estate firm EquiAlt LLC, its CEO Brian Davison, and its Managing Director Barry Rybicki, in connection with an allegedly fraudulent unregistered securities offering that raised more than $170 million from at least 1,100 investors, a number of whom invested their retirement funds.
According to the SEC's complaint, unsealed Feb. 14, 2020,in the U.S. District Court for the Middle District of Florida, EquiAlt, Davison, Rybicki, and the entities they control, fraudulently raised millions of dollars by making material misrepresentations to investors about EquiAlt's investment strategy, the financial condition of the investments, and the uses of investor proceeds. The defendants allegedly told investors they would pool investor funds and use approximately 90% of the money to purchase undervalued real estate, rent or flip the properties, and pay investors 8-10% annual interest generated from the real estate investments. In reality, the complaint alleges, a large portion of investor money went to support Davison's and Rybicki's lavish personal spending, and less than 50% of the funds raised were used to invest in properties. In addition, money from one investment fund controlled by EquiAlt was allegedly used to make Ponzi-like payments to investors in another fund.
"We allege that Davison and Rybicki made 'too good to be true' promises about nearly every material aspect of EquiAlt's business to induce retail investors, including elderly individuals, to invest with them," said Eric I. Bustillo, Director of the SEC's Miami Regional Office. "The SEC's emergency action seeks to prevent further harm to these retail investors and locate and preserve as many assets as possible."
On Feb. 14, 2020, a federal judge granted the SEC's request for emergency relief, including a temporary restraining order, an asset freeze, an order against the destruction of documents, and an accounting against EquiAlt, Davison, Rybicki and a number of companies charged by the SEC as relief defendants. The court also granted the SEC's request to appoint a receiver over the corporate defendants and the relief defendants. The SEC's complaint charges EquiAlt, Davison, and Rybicki with violations of the antifraud and securities registration provisions and aiding and abetting violations of the broker-dealer registration provisions of the federal securities laws. The SEC seeks disgorgement of allegedly ill-gotten gains, and financial penalties against the defendants.
The SEC's continuing investigation is being conducted by Mark Dee, Andre Zamorano, and Chanel T. Rowe in the Miami Regional Office and supervised by Thierry Olivier Desmet, Fernando Torres, and Glenn S. Gordon. The SEC's litigation is being led by Alise Johnson and supervised by Andrew Schiff.
The SEC encourages investors to check the backgrounds of people selling investments by using the SEC's investor.gov website to quickly identify whether they are registered professionals and confirm their identity.
NRC Receives Event Notification Involving Minnesota Department of Health
WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54514) involving Minnesota Department of Health, Rochester, Minnesota:
AGREEMENT STATE REPORT - MEDICAL EVENT
The following was received from the state of Minnesota via email:
"Lu-177 administration was performed on February 4, 2020. The administration team did not start the patient on amino acids prior to the administration. Upon discovery of the error, the acids were started. This resulted in an unintended dose to the kidneys. The Radiation Safety Officer (RSO) and staff were notified on February
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WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54514) involving Minnesota Department of Health, Rochester, Minnesota:
AGREEMENT STATE REPORT - MEDICAL EVENT
The following was received from the state of Minnesota via email:
"Lu-177 administration was performed on February 4, 2020. The administration team did not start the patient on amino acids prior to the administration. Upon discovery of the error, the acids were started. This resulted in an unintended dose to the kidneys. The Radiation Safety Officer (RSO) and staff were notified on February5, 2020. They determined it was a medical event on February 7, 2020 at 0930 CST. The event was reported to the Minnesota Department of Health (MDH) at 1000 CST on February 7, 2020. The intended dose to the kidney was 490 Rem. The delivered dose to the kidney was 740 Rem (this was their 'best case scenario' calculation). This would fall under 4731.4525 Subpart 1 Item C.: 'a dose to the skin or an organ or tissue other than the treatment site that exceeds 50 Rem and exceeds 50 percent of the dose expected from the administration defined in the written directive.'"
This event is still under investigation with MDH.
Minnesota Event Report ID: MN200002
A Medical Event may indicate potential problems in a medical facility's use of radioactive materials. It does not necessarily result in harm to the patient.
Agreement State
Rep Org: MINNESOTA DEPARTMENT OF HEALTH
Licensee: MAYO CLINIC - ROCHESTER
Region: 3
City: ROCHESTER
State: MN
County:
License #: 1047
Agreement: Y
Docket:
NRC Notified By: TYLER KRUSE
HQ OPS Officer: ANDREW WAUGH
Emergency Class: NON EMERGENCY
10 CFR Section:
AGREEMENT STATE
Event Number: 54514
Notification Date: 02/07/2020
Notification Time: 11:52 [ET]
Event Date: 02/02/2020
Event Time: 00:00 [CST]
Last Update Date: 02/07/2020
Person (Organization):
ANN MARIE STONE (R3DO)
NMSS_EVENTS_NOTIFICATION (EMAIL)
NRC Receives Event Notification Involving Kentucky Department of Radiation Control
WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54513) involving Kentucky Department of Radiation Control, Centertown, Kentucky:
AGREEMENT STATE REPORT - FIXED PROCESS GAUGE SHUTTER MALFUNCTION
The following was received from the Commonwealth of Kentucky via email:
"The KY RHB [Kentucky Radiation Health Branch] was notified via email on 2/6/2020 (1559 EST) by a representative from specifically licensed facility, Big Rivers Electric Corp., that at 0715 on Thursday, 2/6/2020, one fixed gauging device (Kay Ray Model 7062BP, Serial Number 20086),
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WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54513) involving Kentucky Department of Radiation Control, Centertown, Kentucky:
AGREEMENT STATE REPORT - FIXED PROCESS GAUGE SHUTTER MALFUNCTION
The following was received from the Commonwealth of Kentucky via email:
"The KY RHB [Kentucky Radiation Health Branch] was notified via email on 2/6/2020 (1559 EST) by a representative from specifically licensed facility, Big Rivers Electric Corp., that at 0715 on Thursday, 2/6/2020, one fixed gauging device (Kay Ray Model 7062BP, Serial Number 20086),containing 100 milliCuries Cs-137 (source serial No. 17400V; assay date 10/30/1985) had developed a potential problem while the shutter arm was moving freely. Survey results showed that the shutter remained in the shut position. The gauge is mounted on a pipe, and manned entry is not of concern, and the plant personnel have been notified that there is no access allowed to the affected pipe. All operational and maintenance activities will be delayed until the device has been removed for repair by a service provider. The licensee will be contacting a licensed service provider to remediate this situation. This is being reported under 10 CFR 30.50(b)(2)."
Kentucky Event Report ID No.: KY200001
Agreement State
Rep Org: KENTUCKY DEPT OF RADIATION CONTROL
Licensee: BIG RIVERS ELECTRIC CORPORATION, DB WILSON STATION
Region: 1
City: CENTERTOWN
State: KY
County:
License #:
Agreement: Y
Docket:
NRC Notified By: AJ BHATTACHARYYA
HQ OPS Officer: BRIAN LIN
Emergency Class: NON EMERGENCY
10 CFR Section:
AGREEMENT STATE
Event Number: 54513
Notification Date: 02/07/2020
Notification Time: 09:23 [ET]
Event Date: 02/06/2020
Event Time: 07:15 [EST]
Last Update Date: 02/07/2020
Person (Organization):
JONATHAN GREIVES (R1DO)
NMSS_EVENTS_NOTIFICATION (EMAIL)
NRC Receives Event Notification Involving Illinois Emergency Management Agency
WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54516) involving Illinois Emergency Management Agency, Libertyville, Illinois:
AGREEMENT STATE REPORT - REPORTABLE EQUIPMENT FAILURE
The following information was received via E-mail:
"A reportable equipment failure occurred on February 22, 2019 at a panoramic irradiator licensee in Libertyville, IL. The equipment failure was not reported to Illinois Emergency Management Agency (IEMA), but identified during a February 6, 2020 routine inspection. The affected equipment has since been repaired
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WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54516) involving Illinois Emergency Management Agency, Libertyville, Illinois:
AGREEMENT STATE REPORT - REPORTABLE EQUIPMENT FAILURE
The following information was received via E-mail:
"A reportable equipment failure occurred on February 22, 2019 at a panoramic irradiator licensee in Libertyville, IL. The equipment failure was not reported to Illinois Emergency Management Agency (IEMA), but identified during a February 6, 2020 routine inspection. The affected equipment has since been repairedand no impacts to health or security were identified.
"IEMA inspectors conducted a routine inspection at Isomedix Operations d/b/a Steris, Libertyville location, on February 6, 2020. During a review of licensee files, it was determined that on the evening of February 22, 2019, required safety equipment became disabled as a result of the cell flooding. This is reportable, at a minimum, under 32 Ill. Adm. Code 340.1220c2. Inspection findings indicate that on or about 1817 CST February 22, 2019, a coupler on a 2 inch sprinkler line in the maze of the cell broke during processing. The cell consequently flooded and began to flood the warehouse. An emergency console stop was executed at approximately 1821 CST and both racks submerged. At 1824 CST, the pool high water alarm was tripped. Inspector review of the console event log indicates within the next 80 minutes the smoke detector, exhaust fans, collision bar, inside roof plug, low air pressure, high temperature, main panel communications and loss of 110 VAC and 24VDC faults were logged.
"It was also noted that at 2024 CST on February 22, 2019, the source racks were moved back up. At 2024 CST, the deionizer radiation monitor alarmed. A number of alarms and faults continued until approximately 1121 CST on 2/23/19. Reportedly, up to four inches of water covered the pool and the entirety of the warehouse. The fire department was needed to shut off the main feeding the sprinklers. Inspection findings indicate, at a minimum, high and low water monitors as well as the deionizer radiation monitor were disabled due to the wiring being flooded and shorted in the trough. The wiring for multiple components were replaced and plumbers contracted to repair the sprinkler system the following day. The licensee has moved to a manually initiated dry fire suppression system. Dosimetry was evaluated and no unusual exposures noted. Interviews of staff involved indicate security systems were not impacted. Leak tests were performed on February 22, 2019. This incident remains under investigation.
"There is no evidence of intentional disruption of safety or security systems."
Event Report ID No.: IL200005
Agreement State
Rep Org: ILLINOIS EMERGENCY MGMT. AGENCY
Licensee: STERIS, INC.
Region: 3
City: LIBERTYVILLE
State: IL
County:
License #: 01123-02
Agreement: Y
Docket:
NRC Notified By: GARY FORSEE
HQ OPS Officer: THOMAS KENDZIA
Emergency Class: NON EMERGENCY
10 CFR Section:
AGREEMENT STATE
Event Number: 54516
Notification Date: 02/07/2020
Notification Time: 15:21 [ET]
Event Date: 02/22/2019
Event Time: 00:00 [CST]
Last Update Date: 02/07/2020
Person (Organization):
ANN MARIE STONE (R3DO)
NMSS_EVENTS_NOTIFICATION (EMAIL)
NRC Receives Event Notification Involving Duane Arnold Power Reactor in Iowa
WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54528) involving the Duane Arnold power reactor in Iowa:
TRANSPORT OF POTENTIALLY CONTAMINATED PERSON TO A MEDICAL FACILITY
"At 0850 CST, on 2/17/2020, the Control Room was notified of a personnel medical event. The individual was transported to a local hospital via ambulance. At the time of transport, the individual was considered to be potentially contaminated because complete surveys could not be performed prior to transfer. Upon arrival at the hospital, the individual and clothing were surveyed
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WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following event notification (No. 54528) involving the Duane Arnold power reactor in Iowa:
TRANSPORT OF POTENTIALLY CONTAMINATED PERSON TO A MEDICAL FACILITY
"At 0850 CST, on 2/17/2020, the Control Room was notified of a personnel medical event. The individual was transported to a local hospital via ambulance. At the time of transport, the individual was considered to be potentially contaminated because complete surveys could not be performed prior to transfer. Upon arrival at the hospital, the individual and clothing were surveyedby an accompanying Site Radiation Protection Technician and no contamination was found.
"This report is being made pursuant to 10 CFR 50.72(b)(3)(xii).
"The NRC Resident Inspector has been notified."
The individual was not performing any work related activities at the time of event.
Power Reactor
Facility: DUANE ARNOLD
Region: 3
State: IA
Unit: [1] [] []
RX Type: [1] GE-4
NRC Notified By: MARK GILBERT
HQ OPS Officer: BRIAN LIN
Emergency Class: NON EMERGENCY
10 CFR Section:
50.72(b)(3)(xii) - OFFSITE MEDICAL
Event Number: 54528
Notification Date: 02/17/2020
Notification Time: 14:51 [ET]
Event Date: 02/17/2020
Event Time: 08:50 [CST]
Last Update Date: 02/17/2020
Person (Organization):
ROBERT ORLIKOWSKI (R3DO)
NRC Proposes to Amend Annual Fees Regulations
WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following news release on Feb. 18:
The Nuclear Regulatory Commission is seeking public comment on proposed changes to its regulations for the licensing, inspection, special project, and annual fees it would charge applicants and licensees for fiscal year 2020.
The proposed rule, published today in the Federal Register, includes fees required by law to recover approximately 90 percent of the agency's annual budget authority. The total budget enacted for the NRC in FY 2020 is approximately $855.6 million, a decrease of $55.4 million
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WASHINGTON, Feb. 19 -- The Nuclear Regulatory Commission issued the following news release on Feb. 18:
The Nuclear Regulatory Commission is seeking public comment on proposed changes to its regulations for the licensing, inspection, special project, and annual fees it would charge applicants and licensees for fiscal year 2020.
The proposed rule, published today in the Federal Register, includes fees required by law to recover approximately 90 percent of the agency's annual budget authority. The total budget enacted for the NRC in FY 2020 is approximately $855.6 million, a decrease of $55.4 millionfrom FY 2019.
After accounting for fee-recovery exclusions, fee-relief activities, and net billing adjustments, the NRC must recover approximately $728.5 million in fees in FY 2020. Approximately $230.6 million will be recovered through fees for service under 10 CFR Part 170, and approximately $497.9 million will be recovered through annual fees under 10 CFR Part 171.
Proposed annual fees would decrease by 26 percent on average for fuel facilities; 3.9 percent for research and test reactors; 2.9 percent for operating power reactors; 1.7 percent for the Department of Energy Uranium Mill Tailings Radiation Control Act Program; and between 1 percent and 7 percent for materials users. Proposed annual fees would increase by 13.2 percent for spent fuel storage/reactor decommissioning and 0.6 percent for DOE transportation activities. The proposed annual fees would remain unchanged for the non-DOE uranium recovery licensee.
The proposed rule also includes several other changes affecting licensees and applicants. First, the NRC proposes to increase the hourly rate from $278 in FY 2019 to $279 for FY 2020. Second, the NRC proposes to revise the flat rate license application fees in Part 170.21 and Part 170.31 to reflect the new hourly rate.
The Federal Register notice (https://www.federalregister.gov/documents/2020/02/18/2020-03054/revision-of-fee-schedules-fee-recovery-for-fiscal-year-2020) includes detailed instructions on how to submit written comments on the proposed fee rule. Comments will be accepted through March 19, 2020.
Litigation: SEC Vs. Richard G. Cody
WASHINGTON, Feb. 19 -- The Securities and Exchange Commission issued the following litigation release (No. 16-cv-12510; D. Mass.):
On December 23, 2019, a federal district court in Massachusetts entered a final judgment against Richard G. Cody, a former investment adviser and broker representative who defrauded Massachusetts retirees.
According to the SEC's complaint, filed on December 12, 2016, Cody defrauded at least three of his retired clients over a twelve-year period by concealing extensive losses in the investors' retirement accounts, which were being rapidly depleted. Cody concealed these
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WASHINGTON, Feb. 19 -- The Securities and Exchange Commission issued the following litigation release (No. 16-cv-12510; D. Mass.):
On December 23, 2019, a federal district court in Massachusetts entered a final judgment against Richard G. Cody, a former investment adviser and broker representative who defrauded Massachusetts retirees.
According to the SEC's complaint, filed on December 12, 2016, Cody defrauded at least three of his retired clients over a twelve-year period by concealing extensive losses in the investors' retirement accounts, which were being rapidly depleted. Cody concealed theselosses by leading the clients to believe that their investments were maintaining steady value and that the clients were living off income from their investments.
The court, which previously ordered a preliminary injunction and an asset freeze against Cody and his company, Boston Investment Partners LLC, granted the SEC's motion for summary judgment and found that Cody violated the antifraud provisions of Section 206(2) of the Investment Advisers Act of 1940 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(c) thereunder. The court permanently enjoined Cody from violating those provisions and Section 206(1) of the Advisers Act and ordered Cody to pay disgorgement of $14,171 plus pre-judgment interest of $3,490. The SEC moved to dismiss relief defendant Boston Investment Partners from the action on February 14, 2020.
On November 9, 2018, Cody pleaded guilty to criminal charges brought by the U.S. Attorney for the District of Massachusetts, in a case arising from the same conduct alleged in the SEC's complaint. On March 7, 2019, Cody was sentenced to two years of imprisonment and ordered to pay a $10,000 fine.
(December 13, 2016), and 24349 (https://www.sec.gov/litigation/litreleases/2018/lr24349.htm) (November 13, 2018).
