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SEC NEWS DIGEST Issue 2005-91 May 12, 2005 COMMISSION

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SEC NEWS DIGEST Issue 2005-91 May 12, 2005 COMMISSION 6/9/14 10:21 AM SEC NEWS DIGEST Issue 2005-91 May 12, 2005 COMMISSION ANNOUNCEMENTS LINDA CHATMAN THOMSEN NAMED DIRECTOR OF THE DIVISION OF ENFORCEMENT Chairman William H. Donaldson today named Linda Chatman Thomsen as the Director of the Division of Enforcement. Thomsen has been at the Commission since 1995 and has served as the Division’s Deputy Director since 2002. Thomsen succeeds Stephen M. Cutler, who in April announced that he would leave the Commission. “I am pleased that Linda has agreed to take on this new role at the Commission,” said Chairman Donaldson. “Linda is a highly accomplished attorney with a proven record of effective advocacy on behalf of the nation’s investors. The skills Linda has exhibited during her tenure at the Commission instill great confidence in her ability to lead this important division.” Thomsen, 50, joined the Commission’s staff in 1995 as Assistant Chief Litigation Counsel. In 1997, Thomsen was named Assistant Director of the Division of Enforcement, and in 2000, she became Associate Director of the division. She became Deputy Director in January 2002. During her tenure at the Commission, she has overseen the investigation and litigation of numerous cases. Among her current duties is oversight of the Commission’s ongoing Enron investigation. "I am honored by this appointment and am committed to maintaining the traditions of excellence and fairness that have been hallmarks of the Commission's enforcement program," said Thomsen Before joining the staff of the Commission, Thomsen was in private practice at the law firm of Davis Polk & Wardwell in Washington, D.C., and New York, and also served as an Assistant United States Attorney for the District of Maryland. In November 2004, she was identified by writers and editors of the Wall Street Journal as one of fifty “Women to Watch.” She received her A.B. from Smith College and her law degree from Harvard University. (Press Rel. 2005-73) ENFORCEMENT PROCEEDINGS SEC ISSUES SETTLED ORDER AGAINST FLORIDA INVESTMENT ADVISER FOR TIPPING AND INSIDER TRADING On May 11, 2005, the Commission issued an Order against Andrew M. Welt, of Deerfield Beach, Florida, who was registered as an investment adviser with the State of Florida until 2004. The Order made findings that on http://www.sec.gov/news/digest/dig051205.txt Page 1 of 23 6/9/14 10:21 AM May 6, 2005, a final judgment was entered against Welt in a civil action, filed by the Commission, entitled U.S. Securities and Exchange Commission v. Welt, et al., U.S.D.C. for the District of Columbia, Civil Action No. 1:05CV0783. The Order also made findings that Welt consented to the entry of the final judgment, which alleged that Welt violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, by engaging in tipping and insider trading from December 1999 through August 2001, and that, during that time period, Welt was a certified planner and investment adviser registered with the State of Florida. (Rel. IA-2382; File No.3-11922) WALTER CERCAVSCHI REINSTATED TO APPEAR AND PRACTICE BEFORE THE COMMISSION AS AN ACCOUNTANT RESPONSIBLE FOR THE PREPARATION OR REVIEW OF FINANCIAL STATEMENTS REQUIRED TO BE FILED WITH THE COMMISSION Pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice, Walter Cercavschi has applied for and been granted reinstatement of his privilege to appear and practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission. Mr. Cercavschi, who was denied the privilege of appearing or practicing before the Commission on June 19, 2001, pursuant to a settled proceeding, has represented that he has complied and will continue to comply with the terms of the order that denied him from appearing or practicing before the Commission as an accountant. Mr. Cercavschi’s reinstatement is effective immediately. (Rel. 34-51686 ; AAE Rel. 2244; File No. 3-10516) SEC RE-FILES INSIDER TRADING CHARGES AGAINST STEVEN NOTHERN RELATED TO TREASURY ANNOUNCEMENT The Commission today announced that it re-filed a civil suit in federal court in Boston against Steven E. Nothern arising from trading in U.S. Treasury 30-year bonds minutes before the Treasury Department’s Oct. 31, 2001, announcement that it would no longer issue such bonds. The Commission previously filed an action against Nothern, Peter Davis, Jr., a Washington, D.C.-based consultant, and former Goldman, Sachs & Co. economist John Youngdahl in September 2003 based on the same facts alleged in the instant complaint, but voluntarily dismissed the complaint as to Nothern in November 2003. Davis and Youngdahl settled with the Commission in September and November 2003, respectively. For more information about this case, see the Commission’s Litigation Release No. 18322, dated Sept. 3, 2003, and Litigation Release No. 18453, dated Nov. 12, 2003. [SEC v. Steven E. Nothern, USDC, District of Massachusetts, Civil Action No. 05-CV-10983 (NMG)] (LR-19223) SELF-REGULATORY ORGANIZATIONS PROPOSED RULE CHANGES The National Association of Securities Dealers filed a proposed rule change (SR-NASD-2005-056) and Amendment No. 1 thereto to eliminate the http://www.sec.gov/news/digest/dig051205.txt Page 2 of 23 6/9/14 10:21 AM Directed Order Process in The Nasdaq Market Center. Publication of the proposal is expected in the Federal Register during the week of May 16. (Rel. 34-51668) The Chicago Board Options Exchange filed a proposed rule change (SR-CBOE- 2004-87) and Amendment Nos. 1 and 2 thereto relating to trading rules on the Hybrid System for index options and options on ETFs. Publication of the proposal is expected in the Federal Register during the week of May 16. (Rel. 34-51680) The American Stock Exchange filed a proposed rule change (SR-Amex-2005- 28) and Amendment Nos. 1, 2 and 3 thereto to amend Section 1101 of the Amex Company Guide to make clarifying and simplifying changes relating to filing and notice requirements applicable to Amex listed issuers. Publication of the proposal is expected in the Federal Register during the week of May 16. (Rel. 34-51681) APPROVAL OF PROPOSED RULE CHANGES The Commission approved a proposed rule change submitted by the Chicago Board Options Exchange (SR-CBOE-2005-27) relating to the Hybrid Opening System. Publication of the proposal is expected in the Federal Register during the week of May 16. (Rel. 34-51670) The Commission approved a proposed rule change (SR-FICC-2005-06) filed by the Fixed Income Clearing Corporation to change the minimum margin deficiency call amount for participants in its mortgage-backed securities division. Publication of the proposal is expected in the Federal Register during the week of May 16. (Rel. 34-51673) IMMEDIATE EFFECTIVENESS OF PROPOSED RULE CHANGE A proposed rule change (SR-PCX-2005-62) filed by the Pacific Exchange relating to exchange fees and charges has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication of the proposal is expected in the Federal Register during the week of May 16. (Rel. 34-51672) SECURITIES ACT REGISTRATIONS The following registration statements have been filed with the SEC under the Securities Act of 1933. The reported information appears as follows: Form, Name, Address and Phone Number (if available) of the issuer of the security; Title and the number and/or face amount of the securities being offered; Name of the managing underwriter or depositor (if applicable); File number and date filed; Assigned Branch; and a designation if the statement is a New Issue. Registration statements may be obtained in person or by writing to the Commission's Public Reference Branch at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the following e-mail box address: <[email protected]>. In most cases, this information is also available on the Commission's website: <www.sec.gov>. http://www.sec.gov/news/digest/dig051205.txt Page 3 of 23 6/9/14 10:21 AM N-2 Macquarie Global Infrastructure Total Return Fund Inc., C/O MACQUARIE INFRASTRUCTURE FUND ADVISE, 600 FIFTH AVENUE, LEVEL 21, NEW YORK, NY, 10020, 212-548-6597 - 50,000 ($1,000,000.00) Equity, (File 333-124793 - May. 11) (BR. 18) S-3 AVITAR INC /DE/, 65 DAN ROAD, SUITE 202, CANTON, MA, 02021, 7818212440 - 15,000,000 ($1,350,000.00) Equity, (File 333-124794 - May. 11) (BR. 36) S-3 ISTAR FINANCIAL INC, 1114 AVENUE OF THE AMERICAS 27TH FLOOR, NEW YORK, NY, 10036, 2129309494 - 0 ($5,000,000,000.00) Equity, (File 333-124795 - May. 11) (BR. 08) S-8 GUITAR CENTER INC, 8187358800 - 0 ($33,754,000.00) Equity, (File 333-124796 - May. 11) (BR. 02) S-1 Alon USA Energy, Inc., 7616 LBJ FREEWAY, SUITE 300, DALLAS, TX, 75251, 972 367 3600 - 0 ($125,000,000.00) Equity, (File 333-124797 - May. 11) (BR. 04) S-3 WCI COMMUNITIES INC, 24301 WALDEN CENTER DRIVE, SUITE 300, BONITA SPRINGS, FL, 34134, 2394988605 - 0 ($1,000,000,000.00) Other, (File 333-124798 - May. 11) (BR. 06) S-4 WCI COMMUNITIES INC, 24301 WALDEN CENTER DRIVE, SUITE 300, BONITA SPRINGS, FL, 34134, 2394988605 - 0 ($200,000,000.00) Non-Convertible Debt, (File 333-124799 - May. 11) (BR. 06) SB-2 Armor Electric, Inc., 201 LOMAS SANTA FE, #420, SOLANA BEACH, CA, 92075, 858-720-0123 - 10,900,000 ($1,375,000.00) Equity, (File 333-124800 - May. 11) (BR. 09) SB-2 Knockout Holdings, Inc., 575 MADISON AVENUE, NEW YORK, NY, 10022, 2125882808 - 9,101,352 ($17,975,170.20) Equity, (File 333-124802 - May.
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