SEC News Digest, 09-03-1996
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SEC NEWS DIGEST Issue 96-167 September 3, 1996 COMMISSION ANNOUNCEMENTS NOTICE TO OUR READERS As of September 10, 1996, the Commission will no longer be posting material on the FedWorld bulletin board. All material available for release to the public at noon each day will be posted on the Commission's Internet website (www.sec.gov) by approximately 2:00 p.m. each day. Any comments or questions concerning this matter should be submitted by August 30, 1996, in writing to Carlene Akins, SEC News Digest Editor, Office of Public Affairs, Policy Evaluation and Research, Securities and Exchange Commission, Mail stop 7-1, Washington, D.C. 20549. Readers may also use the FedWorld mail function to leave an e-mail message for Carlene Akins. COMMISSION MEETINGS CHANGE IN THE MEETING: CANCELLATION The closed meeting scheduled for Thursday, September 5, 1996, at 10:00 a.m., has been cancelled. 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 (202) 942- 7070. ENFORCEMENT PROCEEDINGS INJUNCTION ENTERED AGAINST JOHN FIEBELKORN IN ANGEION CORPORATION MARKET MANIPULATION The Commission announced that on August 23 the united States District Court for the Southern District of Texas entered an Agreed Order of Permanent Injunction and Other Equitable Relief (Order) against Defendant John Fiebelkorn (Fiebelkorn). Fiebelkorn consented to the entry of the injunction without admitting or denying the allegations made against him in the Commission's complaint, which was filed on August 14, 1996. The complaint alleges that Fiebelkorn violated the antifraud sections of the securities laws, Section 17(a) of the Securities Act of 1933, section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In its complaint, the Commission alleged that from about 1989 until June 1991, several individuals engaged in a fraudulent scheme involving the common stock of Angeion Corporation (Angeion) which was designed to create the appearance of activity in Angeion stock. To do so, these individuals employed various manipulative devices, including matched trades, wash trades and stock parking. After the manipulative activities ceased, the stock price of Angeion fell from a high of $10 3/8 in March 1991, to a low of $2 3/4 in July 1991. The Commission's complaint alleged that Fiebelkorn engaged in at least one instance of stock parking and in at least three matched trades involving 80,00 shares of Angeion valued at approximately $700,000. [SEC v. John Fiebelkorn, USDC, S.D. Texas, H-96-2611] (LR-15026) INVESTMENT COMPANY ACT RELEASES CORRECTION In the August 30th issue of the Digest, an inaccurate release number, IC-22183, was specified for GE FUNDS, ET AL. The correct release number is IC-22187. The accurate summary for release number IC-22183 is as follows: GREAT POND INVESTORS, ET AL. An order has been issued under Sections 6(b) and 6(e) of the Investment Company Act on an application filed by Great Pond Investors, L.P. (Great Pond), GPCI, L.P. (GPCI), and Bain & Company, Inc. (Bain). The order grants an exemption to Great Pond, GPCI, and certain subsequent partnerships organized by Bain from all provisions of the Act except Section 9, certain provisions of Sections 17 and 30, Sections 36 through 53, and the rules and regulations thereunder. Great Pond, GPCI, and the subsequent partnerships will be "employees' securities companies" within the meaning of Section 2(a) (13) of the Act. (ReI. IC-22183 - August 28) AUSA LIFE INSURANCE COMPANY, INC., ET AL. An order has been issued on an application filed by AUSA Life Insurance Company, Inc. and Diversified Investors Variable Funds. Applicants received an order under section 26(b) of the Investment Company Act approving the proposed substitution of interests in the Diversified Investors Portfolios' International Equity Portfolio for shares in the International Portfolio of the Scudder Variable Life Investment Fund. (ReI. IC-22188 - August 29) 2 NEWS DIGEST, September 3, 1996 THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, ET AL. A notice has been issued giving interested persons until September 23 to request a hearing on an application filed by The Lincoln National Life Insurance Company (Lincoln Life), Lincoln Life & Annuity Company of New York (Lincoln Life of NY), Lincoln National Variable Annuity Account L (Account L), Lincoln Life & Annuity Company of New York Variable Annuity Account L (Account L-NY), and LNC Equity Sales Corporation. Applicants request an order: pursuant to Section 17(b) of the Investment Company Act granting an exemption from section 17(a) of the Act; and pursuant to Section 11 of the Act approving the transfer of assets from the VA-I Separate Account of UNIJM Life Insurance Company of America (UNUM VA-I Separate Account) to Account L and Account L-NY, and from VA-I Separate Account of First UNUM Life Insurance Company of America (First UNUM VA-I Separate Account) to Account L-NY; and the offer of exchange of interests in the UNUM VA-I Separate Account for interests in Account L and Account L-NY, and the offer of exchange of interests in First UNUM VA-I Separate Account for interests in Account L-NY, through the assumption reinsurance by Lincoln Life and Lincoln Life of NY of group variable annuity contracts issued by UNUM Life Insurance Company of America and First UNUM Life Insurance Company of America. (ReI. IC-22189 - August 29) THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, ET AL. A notice has been issued giving interested persons until September 23 to request a hearing on an application filed by The Lincoln National Life Insurance Company (Lincoln Life), Lincoln National Variable Annuity Account L (Account L), Lincoln Life & Annuity Company of New York (Lincoln Life of NY), Lincoln Life & Annuity Variable Annuity Account L (Account L-NY), and LNC Equity Sales Corporation. Applicants, request an order pursuant to Section 6(c) of the Investment Company Act granting exemptions from sections 26(a) (2) (C) and 27(c) (2) of the Act to permit the deduction of a mortal ity and expense risk charge of 1.20% from the assets of Account L or Account L-NY in connection with the offer and sale of certain group variable annuity contracts (Contracts) and any contracts issued in the future by Lincoln Life or Lincoln Life of NY (Future Contracts) that are materially similar to the Contracts; and the assets of other separate accounts established in the future by Lincoln Life or Lincoln Life of NY to fund Contracts and Future Contracts. Exemptive relief also is requested to the extent necessary to permit the offer and sale of Contracts and Future Contracts for which certain broker-dealers other than LNC Equity Sales Corporation serve as distributors and/or principal underwriters. (ReI. IC-22190 - August 29) SOUTHEAST INTERACTIVE TECHNOLOGY FUND I, LLC, ET AL. An order has been issued on an application filed by Southeast Interactive Technology Fund I, LLC (Fund), et ale under section 17(b) of the Investment Company Act for an exemption from sections 17(a) (1) and (3) of the Act. The order would permit the Fund to provide a revolving line of credit to an affiliated person of an NEWS DIGEST, September 3, 1996 3 affiliated person of the Fund. (ReI. IC-22191 - August 30) THE TRAVELERS INSURANCE COMPANY, ET AL. A notice has been issued giving interested persons until September 24 to request a hearing on an application filed by The Travelers Insurance Company (Travelers), The Travelers Fund QP for Variable Annuities (Account) and Tower Square Securities, Inc. (Tower) (collectively, Applicants). Applicants seek an order under Section 6(c) of the Investment Company Act granting exemptions from sections 26 (a) (2) (C) and 27 (c) (2) of the Act. The order would provide exemptions to the extent necessary to permit the deduction of a mortality and expense risk charge from the assets of the Account or other separate accounts established by Travelers in the future to support certain group variable annuity contracts (Contracts) as well as other variable annuity contracts that are substantially similar in all material respects to the Contracts (Future Contracts). Applicants request that such exemptive relief extend to any broker- dealer other than Tower that is affiliated with Travelers, is registered as a broker-dealer under the Securities Exchange Act of 1934, and may serve in the future as principal underwriter of the Contracts or Future Contracts. (ReI. IC-22192 - August 30) HOLDING COMPANY ACT RELEASES CSW INTERNATIONAL, INC. ET AL. An order has been issued authorizing CSW International, Inc. (CSWI), a wholly-owned nonutility subsidiary of Central and South West Corporation (CSW) , a registered holding company, to guarantee up to $500 million aggregate principal amount of debt securities, to be issued to third parties by CSW Energy, Inc., a wholly-owned nonutility subsidiary of CSW. (ReI. 35-26566) SELF-REGULATORY ORGANIZATIONS APPROVAL OF PROPOSED RULE CHANGES The Commission approved a proposed rule change filed by the Chicago Stock Exchange (SR-CHX-96-12) relating to listing standards for Investment Company units. Publication of the approval order was expected in the Federal Register during the week of August 26. (ReI. 34-37589; International Series ReI. 1015) The Commission approved a proposed rule change filed by the Chicago Board Options Exchange (SR-CBOE-96-49) to amend Exchange Rule 17.10 to formalize the current practice whereby the Board has permitted one additional submission by both Exchange staff and Respondent following Respondent's petition for review of the Business Conduct 4 NEWS DIGEST, September 3, 1996 committee's decisions by the Exchange's Board of Directors.