
[Federal Register: July 16, 2009 (Volume 74, Number 135)]
[Notices]               
[Page 34602-34603]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy09-83]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Sunshine Act Meetings

    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 Open Meetings on Monday, July 20, 
2009 at 2 p.m. and Tuesday, July 21, 2009 at 10 a.m., in the 
Auditorium, Room L-002.
    The subject matter of the July 20, 2009 Open Meeting will be:
    The Commission will hear oral argument in an appeal by Joseph John 
VanCook from the decision of an administrative law judge. The law judge 
found that VanCook, a registered representative formerly associated 
with Pritchard Capital Partners, LLC, willfully violated Section 10(b) 
of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5 by 
orchestrating a fraudulent scheme involving material misrepresentations 
to permit his clients to ``late trade'' shares of certain registered 
investment companies. The law judge also found that VanCook aided and 
abetted and willfully caused Pritchard Capital's clearing broker to 
violate Rule 22c-1 of the Investment Company Act of 1940. The law judge 
further found that VanCook aided and abetted and willfully caused 
Pritchard Capital to violate Exchange Act Section 17(a)(1) and Exchange 
Act Rule 17a-3(a)(6) for failing to make and keep current certain books 
and records. For these violations, the law judge barred VanCook from 
association with any broker or dealer or investment company, imposed a 
cease-and-desist order against him, ordered disgorgement of 
$538,565.70, plus prejudgment interest, and assessed a $100,000 third-
tier civil money penalty.
    Among the issues likely to be argued are whether VanCook's conduct 
was fraudulent, whether he aided and abetted and/or caused a violation 
of Rule 22c-1, whether he aided and abetted and/or caused his firm to 
fail to make and keep accurate books and records, and, if so, whether 
and to what extent sanctions should be imposed on him.
    The subject matter of the July 21, 2009 Open Meeting will be:
    The Commission will hear oral argument in an appeal by the Division 
of Enforcement from the decision of an administrative law judge in a 
proceeding brought pursuant to Commission Rule of Practice 102(e). The 
law judge found that the conduct of Kevin Hall, CPA and Rosemary Meyer, 
CPA, in connection with the fiscal year (``FY'') 1999 audit of the 
financial statements of U.S. Foodservice, Inc. (``USF'') and the 
interim review of USF's second quarter FY 2000 financial statements, 
was not improper under the Rule.
    Among the issues likely to be argued are whether Hall and Meyer 
failed to exercise due professional care in the planning and 
performance of the audit, failed to obtain sufficient competent 
evidential matter to afford a reasonable basis for an opinion regarding 
the financial statements under audit, and failed to act in accordance 
with professional standards in connection with the interim review. The 
parties may also address whether and to what extent Hall and Meyer 
should be sanctioned if they are found to have engaged in improper 
professional conduct.
    The Commission also will hear oral argument in an appeal by Gregory 
O. Trautman from the decision of an administrative law judge. The law 
judge found that Trautman, co-founder, president, and chief executive 
officer of Trautman Wasserman & Company, willfully violated Section 
17(a) of the Securities Act of 1933, Section 10(b) of the Securities 
Exchange Act of 1934 and Exchange Act Rule 10b-5 by engaging in a 
scheme to defraud mutual funds and their shareholders through late 
trading and deceptive market timing. The law judge also found that 
Trautman willfully aided and abetted, and was a cause of, Trautman 
Wasserman & Company's violations of Exchange Act Section 15(c) and 
Exchange Act Rule 10b-3, and willfully aided and abetted, and was a 
cause of, Trautman Wasserman & Company's clearing firm's violations of 
Rule 22c-1 of the Investment Company Act of 1940. For these violations, 
the law judge barred Trautman from association with any broker or 
dealer, prohibited him from serving or acting in various capacities 
with respect to a registered investment company, imposed a cease-and-
desist order, ordered disgorgement of $1,373,799.75, plus prejudgment 
interest, and assessed a $500,000 third-tier civil money penalty.
    Among the issues likely to be argued are whether Trautman's conduct 
was fraudulent, whether he aided and abetted and/or caused a violation 
of Investment Company Act Rule 22c-1, whether he aided and abetted and/
or caused his firm's violations, and, if so, whether and to what extent 
sanctions should be imposed on him.
    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items.
    For further information and to ascertain what, if any, matters have 
been added, deleted or postponed, please contact:
    The Office of the Secretary at (202) 551-5400.


[[Page 34603]]


    Dated: July 13, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-17000 Filed 7-15-09; 8:45 am]

BILLING CODE 8010-01-P
