non-Certified Internal Auditor |

FOR IMMEDIATE RELEASE
2008-147

Washington, D.C., July 22, 2008 — The Securities and Exchange Commission today charged an Ann Arbor, Mich.-based company and a former executive in an accounting fraud scheme that ultimately cost the company more than 7 million in market capitalization and caused its stock price to drop by more than half its value during a two-month period in early 2006.

TheSecurity Exchange Commissionalleges that Scott Hirth of Carleton, Mich., the former Vice President of Finance and CFO for ProQuest Company’s Information and Learning Division, made fraudulent manual journal entries at the end of monthly and quarterly reporting periods in order to favorably alter ProQuest’s financial results over a five-year period. ProQuest, which produces electronic databases of archived information, is now known as Voyager Learning Company. The company has agreed to settle the SEC’s charges, and Hirth will pay more than 0,000 to settle the charges against him.

“This case demonstrates the Commission’s willingness to take strong action against those who commit financial fraud and the public companies that fail to prevent fraud through effective internal controls,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement.

Merri Jo Gillette, Director of the SEC’s Chicago Regional Office, said, “As alleged in our complaint, Hirth engaged in an egregious and extensive accounting fraud by single-handedly making hundreds of false manual journal entries on the company’s books and then going to great lengths to conceal his deceptive techniques. Our tenacious investigative work and enforcement action in this case should serve as a stark lesson to those seeking to commit fraud and harm investors.”

According to the SEC’s complaint, filed in federal court in Detroit, Hirth made false accounting entries that materially inflated ProQuest’s reported “Earnings Before Interest and Taxes” for 2001 through 2004 and the first three quarters of 2005. TheSecurity Exchange Commissionalleges that Hirth created false documentation to purportedly support the balances in the manipulated accounts and used “hidden rows” and “white font” functions in spreadsheets to conceal his false accounting entries. According to the SEC’s complaint, after ProQuest disclosed the accounting scheme in its public filings, it lost more than 7 million in market capitalization and its stock price dropped from .41 to .31 per share between February and April 2006.

TheSecurity Exchange Commissionalso alleged that ProQuest failed to devise and maintain a system of internal accounting controls that could have prevented Hirth’s scheme and failed to properly apply other basic accounting principles.

ProQuest and Hirth settled the charges without admitting or denying the allegations of the SEC’s complaint. Under the settlement, Hirth is permanently enjoined from committing future violations of the federal securities laws, and will pay 3,676 in disgorgement, ,474.25 in prejudgment interest, and a penalty of 0,000. Hirth also consented to be permanently barred from serving as an officer and director of a public company and from practicing as an accountant before the Commission. ProQuest is permanently enjoined from future violations of the internal controls, books and records, and reporting provisions of the federal securities laws.

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For more information, contact:

Merri Jo Gillette
Regional Director, SEC’s Chicago Regional Office
(312) 353-9338

Robert J. Burson
Senior Associate Regional Director, SEC’s Chicago Regional Office
(312) 353-7428

http://www.sec.gov/news/press/2008/2008-147.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-148

Washington, D.C., July 23, 2008 — The Securities and Exchange Commission today filed fraud charges and obtained an emergency court order to stop a Hillsborough, Calif., investment adviser who is alleged to have misappropriated more than million from investors who were falsely promised that their money would be invested in the stock market.

According to the SEC’s complaint, Robert C. Brown, Jr. promised more than 200 investors living primarily in the San Francisco Bay Area as well as in southern California and out of state that he would invest their money risk-free in stock or options. Instead, Brown helped himself to millions of dollars of client money to pay for lavish personal expenses such as upkeep on his Ferrari, limousine services and shopping trips. The SEC’s complaint also alleges that, in a classic Ponzi scheme tactic, Brown often transferred money from new investors to favored clients to create the illusion of profitable trading.

At the SEC’s request, the federal court for the Northern District of California issued an order freezing Brown’s assets and prohibiting him from, among other things, further transferring or dissipating his clients’ assets.

“As alleged in our complaint, Brown held himself out as a securities expert, when essentially all he did was steal money from his clients,” said Marc Fagel, Director of the SEC’s San Francisco Regional Office. “Today’s action serves as a reminder that investors should exercise caution in dealing with supposed experts who claim they can invest in the markets risk-free.”

According to the SEC’s complaint, since at least 2000 and continuing to the present, Brown (previously of Vallejo, Calif.) offered a variety of investment programs that falsely promised astronomical returns. One program promised, for example, to double investor money in eight months. TheSecurity Exchange Commissionalleges that Brown raised more than million, but transferred millions of dollars to himself and his family members for personal use. Only approximately million went to any brokerage account. However, this account was a personal brokerage account that Brown treated as his own piggy bank.

TheSecurity Exchange Commissionalleges that in order to perpetuate the scheme, Brown transferred newly-raised funds to older investors as purported profits on securities trading. The SEC’s complaint likewise alleges that Brown provided false account statements to investors that showed their investments were earning the returns he had promised. When Brown failed to repay his clients, he concocted elaborate excuses, blaming delays on “the Patriot Act” while representing that theSecurity Exchange Commissionhad “cleared” him of wrongdoing.

The SEC’s complaint charges Brown with violating the antifraud and investment advisory provisions of the federal securities laws, and seeks preliminary and permanent injunctions, disgorgement, and civil penalties. The Commission further seeks disgorgement of all investor funds disbursed to relief defendants, Duane Eddings, CDC Global, Inc. and Wise Investors Simply Excel, LLC. Pursuant to the court’s order, a hearing will be held on August 5, 2008 to determine whether the defendants’ activities will continue to be restricted during the remainder of the litigation.

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For more information, contact:

Marc J. Fagel
Regional Director
SEC’s San Francisco Regional Office
(415) 705-2449

Cary Robnett
Assistant Regional Director
SEC’s San Francisco Regional Office
(415) 705-2335

http://www.sec.gov/news/press/2008/2008-148.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-146

Washington, D.C., July 22, 2008 — The Securities and Exchange Commission staff today released a new ComplianceAlert letter identifying common deficiencies and weaknesses thatSecurity Exchange Commissionexaminers have recently found during compliance examinations of firms that are registered with the SEC. The ComplianceAlert is intended to foster robust compliance in the securities industry by providing information about deficiencies and encouraging chief compliance officers to take steps to address any similar issues at their firms.

The SEC’s Office of Compliance Inspections and Examinations conducts compliance examinations of investment advisers, investment companies, broker-dealers, transfer agents and other types of SEC-registered firms to determine whether they are in compliance with the federal securities laws and regulations. TheSecurity Exchange Commissionstaff last year issued its first ComplianceAlert letter to describe compliance issues and deficiencies found in examinations and to encourage firms to review compliance in those identified areas and implement improvements as appropriate.

“Our June 2007 ComplianceAlert was very well-received by industry compliance and legal professionals,” said Lori Richards, Director of the SEC’s Office of Compliance Inspections and Examinations. “Many industry compliance staff told us that, after reading it, they reviewed their firms’ practices in the areas we noted and took steps to ensure that their firms’ practices were fully compliant. By highlighting our recent examination findings in this way, we expect that this second ComplianceAlert will be similarly helpful to industry firms that are seeking to be proactive in addressing compliance risks.”

The new ComplianceAlert letter describes examination findings in several areas:

• Personal trading by investment advisory employees.
• Soft dollar practices by advisers.
• Mutual funds’ proxy voting practices.
• Valuation and liquidity issues for high-yield municipal bond funds.
• “Free lunch” sales seminars.
• Broker-dealers’ valuation and collateral management processes.
• Issues identified at broker-dealers affiliated with insurance companies.
• Supervision of solicitations for advisory services.
• Use of mortgage financing as credit for the purchase of securities.
• Broker-dealers’ supervisory and compliance controls over offices of supervisory jurisdiction.
• Transfer agents’ practices regarding “lost securityholders”

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http://www.sec.gov/news/press/2008/2008-146.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-145

Washington, D.C., July 18, 2008 — The Securities and Exchange Commission today announced that the Federal Home Loan Mortgage Corporation (Freddie Mac) has voluntarily registered its common stock under the Securities Exchange Act of 1934 and is now subject to the Act’s periodic and current reporting requirements. By voluntarily becoming a reporting company, Freddie Mac has publicly disclosed, and will continue to disclose, key information about the company’s finances and operations.

The Commission staff provided Freddie Mac the same regulatory relief given in 2004 to the Federal National Mortgage Association (Fannie Mae), which voluntarily registered its common stock in the year before. Under the relief, both companies agree to disclose direct financial obligations and off-balance sheet arrangements on the same basis as if they were public companies conducting registered offerings.

http://www.sec.gov/news/press/2008/2008-145.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-143

Washington, D.C., July 15, 2008 - The Securities and Exchange Commission today issued an emergency order to enhance investor protections against “naked” short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks.

The SEC’s order will require that anyone effecting a short sale in these securities arrange beforehand to borrow the securities and deliver them at settlement. The order will take effect at 12:01 a.m. ET on Monday, July 21. In addition to this emergency order, theSecurity Exchange Commissionwill undertake a rulemaking to address these issues across the entire market.

“The SEC’s mission to protect investors, maintain orderly markets, and promote capital formation is more important now than it has ever been,” saidSecurity Exchange CommissionChairman Christopher Cox. “Today’s Commission action aims to stop unlawful manipulation through ‘naked’ short selling that threatens the stability of financial institutions. We will continue our vigorous commitment to investors by working within theSecurity Exchange Commissionand in close cooperation with our regulatory counterparts to promote the continued health and vibrancy of our markets.”

The Commission’s emergency order, pursuant to its authority under Section 12(k)(2) of the Securities Exchange Act of 1934, will be effective at 12:01 a.m. ET on July 21, 2008 and will terminate at 11:59 p.m. ET on July 29, 2008. The Commission may extend the order to continue it in effect thereafter if the Commission determines that the continuation of the order is necessary in the public interest and for the protection of investors, but for no more than 30 calendar days in total duration.

The securities identified in the Commission’s order:

http://www.sec.gov/news/press/2008/2008-143.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-144

Washington, D.C., July 16, 2008 — The Securities and Exchange Commission today charged the mayor of Beaufort, S.C., with insider trading on non-public information that he obtained while doing consulting work for a California biotechnology company.

TheSecurity Exchange Commissionalleges that Mayor William J. Rauch purchased stock in Advanced Cell Technology, Inc., immediately after one of its executives informed him about a breakthrough embryonic stem cell technique that the company was about to disclose publicly. According to the SEC’s complaint, Rauch was told the information was confidential, and he had previously signed an agreement with the company that barred him from using confidential company information for his own benefit. Rauch has agreed to settle the SEC’s charges without admitting or denying the allegations.

“This case underscores how important it is for consultants provided with non-public information to be mindful of the duties of confidentiality owed to companies that hire them,” said Marc J. Fagel, Regional Director of the SEC’s San Francisco Regional Office.

The SEC’s complaint, filed in federal court in San Francisco, alleges that an Advanced Cell Technology executive told Rauch on Aug. 3, 2006, that a science journal would soon be publishing an article reporting Advanced Cell’s development of a new technique for creating stem cell lines without harming embryos, which the company believed might alleviate concerns about stem cell technology.

According to the SEC’s complaint, Rauch called a securities broker and opened accounts in his name and his children’s names on the same day he received the confidential information. On August 9 and 14, after further discussions with the Advanced Cell executive, Rauch telephoned his broker and purchased more than ,000 of Advanced Cell stock in his children’s accounts. On August 23, Advanced Cell publicly announced its embryonic stem cell development, and its stock price jumped 360 percent from {content}.40 to .83 per share. The stock price declined to {content}.96 per share on August 25, still 140 percent above the price just before the announcement. Even with the price decline, Rauch’s potential profit on his stock purchases two weeks earlier, had he sold, was more than ,000.

Without admitting or denying the SEC’s allegations, Rauch has consented to an injunction barring future securities law violations and has agreed to pay ,708 in disgorgement, ,576 in prejudgment interest, and a ,708 penalty.

TheSecurity Exchange Commissionacknowledges the assistance of the Financial Industry Regulatory Authority (FINRA) in this matter.

Marc J. Fagel
Regional Director, SEC’s San Francisco Regional Office
(415) 705-2449

Cary S. Robnett
Assistant Regional Director, SEC’s San Francisco Regional Office
(415) 705-2335

http://www.sec.gov/news/press/2008/2008-144.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-139

Washington, D.C., July 11, 2008 — The Securities and Exchange Commission today announced that Wayne Strumpfer has been named to lead the investor education unit within the SEC’s recently expanded Office of Investor Education and Advocacy. Mr. Strumpfer will be responsible for leading the SEC’s efforts to help Americans of all ages better learn how to invest wisely and avoid costly mistakes and financial scams.

The Office of Investor Education and Outreach is one of four units created within the SEC’s Office of Investor Education and Advocacy (OIEA) afterSecurity Exchange CommissionChairman Christopher Cox directed an expansion of the Commission’s investor advocacy and outreach initiatives beginning last year. Mr. Strumpfer joined the SEC’s OIEA staff this week as Assistant Director, Investor Education. He worked most recently at the California Department of Corporations, where he was the Deputy Commissioner of Enforcement and Investor Education. He also has served as the Chairman of the Investor Education Section for the North American Securities Administrators Association.

“I am so pleased that Wayne has agreed to join theSecurity Exchange Commissionstaff,” said Kristi Kaepplein, Director of the SEC’s Office of Investor Education and Advocacy. “Wayne’s experience in investor education and outreach as well as in securities law enforcement and fraud victim assistance for the nation’s most populous state will greatly benefit the Commission and the investors we serve.”

Mr. Strumpfer said, “I am looking forward to this new opportunity with theSecurity Exchange Commissionto serve individual investors on a national level and help ensure they are armed with the requisite knowledge to make wise investments.”

In addition to his prior duties as Deputy Commissioner in California, Mr. Strumpfer has worked closely with many state and federal regulators to promote investor education and financial literacy. During his tenure in California, the state enhanced its nationally recognized senior protection project and created a program to assist military members and their families to avoid financial fraud. On a national level, Mr. Strumpfer produced a publication aimed at educating law enforcement about securities fraud, and has coordinated investor education efforts in many states. He also served as a member of the Board of Trustees for the national Investor Protection Trust.

Prior to his tenure with the Department of Corporations, Mr. Strumpfer served as Deputy Attorney General and in other important legal and legislative roles in California, including Deputy Executive Director of the California District Attorneys Association, Executive Director of the Office of Criminal Justice Planning, and Executive Director of the Fair Political Practices Commission.

The SEC’s Office of Investor Education and Advocacy was expanded last year by Chairman Cox to ensure that the views of individual investors inform the Commission’s regulatory policies and disclosure initiatives. Among the Commission’s key projects aimed at retail investors are educating senior investors about protecting themselves from securities fraud, promoting the use of “plain English” in investment disclosures, and informing investors how “interactive data” can make disclosures more useful to them. OIEA has contact with tens of thousands of individual U.S. investors each year through its investor assistance and education programs. The four units within OIEA are the Office of Investor Education and Outreach, the Office of Policy, the Office of the Freedom of Information Act, and the Office of Investor Assistance.

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http://www.sec.gov/news/press/2008/2008-139.htm

Source: SEC site

Prevention Effort Augments SEC’s Ongoing Enforcement Investigations

FOR IMMEDIATE RELEASE
2008-140

Washington, D.C., July 13, 2008 — The Securities and Exchange Commission today announced that theSecurity Exchange Commissionand other securities regulators will immediately conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices. The examinations will be conducted by the SEC’s Office of Compliance Inspections and Examinations, as well as the Financial Industry Regulatory Authority and New York Stock Exchange Regulation, Inc.

The securities laws require that broker-dealers and investment advisers have supervisory and compliance controls to prevent violations of the securities laws, including market manipulation. Examiners will focus on these controls and whether they are reasonably designed to prevent the intentional creation or spreading of false information intended to affect securities prices, or other potentially manipulative conduct.

These examinations are in addition to the Commission’s enforcement investigations into alleged intentional manipulation of securities prices through rumor-mongering and abusive short selling that are already underway.

“The examinations we are undertaking with FINRA and NYSE Regulation are aimed at ensuring that investors continue to get reliable, accurate information about public companies in the marketplace,” saidSecurity Exchange CommissionChairman Christopher Cox. “They will also provide an opportunity to double-check that broker-dealers and investment advisers have appropriate training for their employees and sturdy controls in place to prevent intentionally false information from harming investors.”

FINRA, NYSE Regulation and the Options Regulatory Surveillance Authority recently reminded industry firms that intentionally spreading false rumors or engaging in collusive activity to affect the financial condition of an issuer are violative activities, and further reminded market participants to review their internal controls and procedures to prevent this type of conduct. (http://www.finra.org/PressRoom/NewsReleases/2008NewsReleases/P038211)

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http://www.sec.gov/news/press/2008/2008-140.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-138

Washington, D.C., July 11, 2008 — The Securities and Exchange Commission today charged Houston-based energy company El Paso Corporation, its subsidiaries, and five former employees with fraud for improperly inflating their proved oil and gas reserves, making the companies’ financial statements materially misleading to investors.

The SEC’s complaint, filed in federal district court in Houston, alleges that El Paso’s former employees lacked required supporting data in estimating reserves and ignored negative drilling results and production trends demonstrating that some fields weren’t producing as projected. Without admitting or denying the allegations, El Paso, its subsidiaries El Paso CGP Company LLC (CGP) and El Paso Exploration & Production Co. (EPPH), and the former employees have agreed to settle the SEC’s enforcement action.

“Although proved reserves are estimated, that does not mean ‘anything goes,’” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement. “Public companies must follow the rules for reserves estimation and reporting, and today’s action emphasizes the Commission’s commitment to ensuring transparency and uniformity when companies report that information to investors.”

Rose Romero, Regional Director of the SEC’s Fort Worth Regional Office, added, “Disregard of the Commission’s rules by companies and their employees will not be tolerated, as demonstrated by this action involving estimated reserves in the oil and gas industry.”

According to the SEC’s complaint, El Paso restated its financial statements for years 1999 through 2002 and the first nine months of 2003, reducing its previously reported proved natural gas and oil reserves over that time period by more than 35 percent and reducing its cumulative earnings through Sept. 30, 2003, by $1.7 billion. CGP and EPPH also restated their previously issued financial statements to correct their material overstatements of proved natural gas and oil reserves, standardized measures of future cash flows, and capitalized costs relating to oil and gas properties.

The SEC’s complaint alleges that in an environment of weak internal controls, El Paso assigned proved reserves to unproved reservoirs, attributed proved reserves to wells and undrilled locations without sufficient underlying data, and failed to take into account negative drilling and production trends when estimating and reporting its proved reserves. For example, El Paso gained information from its drilling activities suggesting that certain fields were not producing as predicted, but failed to investigate adequately the reasons for the negative trends or to reduce those estimates.

To settle the SEC’s charges, El Paso, its subsidiaries, and the former employees all consented to permanent injunctions against violations of the antifraud and other provisions of the federal securities laws. Rodney D. Erskine, the former president of El Paso’s Exploration and Production business segment, agreed to pay a $75,000 penalty, and Randy L. Bartley, the former senior vice president, agreed to pay a $40,000 penalty. Former vice presidents Steven L. Hochstein, John D. Perry, and Bryan T. Simmons each agreed to pay $40,000 penalties.

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For more information, contact:

Stephen Korotash
Associate Regional Director, SEC’s Fort Worth Regional Office
(817) 978-6490

Jeffrey Cohen
Assistant Regional Director, SEC’s Fort Worth Regional Office
(817) 978-6480

http://www.sec.gov/news/press/2008/2008-138.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-142

Washington, D.C., July 14, 2008 — The Securities and Exchange Commission announced today that Meridith Mitchell has been named the agency’s Deputy General Counsel for Legal Policy and Administrative Practice.

Ms. Mitchell fills the position previously held by Alexander F. Cohen, who recently became the SEC’s Deputy Chief of Staff. She joins Andrew N. Vollmer, who is Deputy General Counsel for Litigation and Adjudication.

Since 2000, Ms. Mitchell has been the Principal Associate General Counsel of the SEC. As part of the senior management team in the Office of the General Counsel, Ms. Mitchell has played a key role in providing legal and policy advice to the Commission on its regulatory and enforcement programs.

The SEC’s General Counsel, Brian Cartwright, said, “The Commission is fortunate indeed to have someone of Meridith’s caliber in this role. Her background as Principal Associate General Counsel and her leadership of the Office of Legal Policy make her uniquely qualified for the challenges of her new position. She brings to the task an encyclopedic knowledge of not only the securities laws but also administrative law. During her career at the SEC, she has worked with five Chairmen, eight General Counsels, many Commissioners and countless Division and Office heads and other staff throughout the agency. She is deeply committed to the mission of the SEC. Since I have been at the Commission, I have benefited from her judgment and experience on a daily basis. I could not be more delighted that she has agreed to serve in this new capacity.”

Ms. Mitchell said, “I have a deep respect for the talented staff of the General Counsel’s Office who work tirelessly in support of the Commission and its Divisions and Offices, and I take great pride in their work on behalf of America’s investors. I also have had the honor of learning from the outstanding General Counsels with whom I have worked. I look forward to continuing to work alongside the staff in my new role, and I thank Chairman Cox and Brian Cartwright for this wonderful opportunity.”

Ms. Mitchell joined the SEC’s Office of General Counsel as a staff attorney in 1992. Prior to her role as Principal Associate General Counsel, Ms. Mitchell was Senior Counselor to the General Counsel, Counsel to Commissioner Paul R. Carey, Assistant General Counsel and Special Counsel for Corporation Finance and Accounting, and a Staff Member of the Advisory Committee on the Capital Formation and Regulatory Processes. Ms. Mitchell has received numerous awards for her dedicated work at the Commission, including the Chairman’s Award for Excellence, the Capital Markets Award, the Law and Policy Award, and the Distinguished Service Award - the Commission’s highest honor. Before joining the SEC, Ms. Mitchell was at Wolf, Block, Schorr & Solis-Cohen in Philadelphia, where she specialized in corporate and securities law. She earned her J.D. from Columbia Law School and B.A. from Oberlin College.

http://www.sec.gov/news/press/2008/2008-142.htm

Source: SEC site