Document ID: SEC-2007-0167-0001
Agency: sec
Document Type: Notice
Title: Meetings; Sunshine Act
Posted Date: 2007-02-02T05:00Z

[Federal Register: February 2, 2007 (Volume 72, Number 22)]
[Notices]               
[Page 5090]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02fe07-95]                         

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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, Pub. L. 94-409, that the Securities and 
Exchange Commission will hold the following meetings during the week of 
February 5, 2007:
    An Open Meeting will be held on Wednesday, February 7, 2007 at 10 
a.m. in the Auditorium, Room LL-002, and Closed Meetings will be held 
on Wednesday, February 7, 2007 at 11 a.m. and Thursday, February 8, 
2007 at 2 p.m.
    Commissioners, Counsels to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the Closed Meetings. 
Certain staff members who have an interest in the matters may also be 
present.
    The General Counsel of the Commission, or his designee, has 
certified that, in his opinion, one or more of the exemptions set forth 
in 5 U.S.C. 552b(c)(3), (4), (5), (7), (8), 9(B) and (10) and 17 CFR 
200.402(a)(3), (4), (5), (7), (8), 9(ii) and (10) permit consideration 
of the scheduled matters at the Closed Meetings.
    Commissioner Nazareth as duty officer, voted to consider the items 
listed for the closed meetings in closed session.
    The subject matter of the Open Meeting scheduled for Wednesday, 
February 7, 2007 at 10 a.m. will be:
    The Commission will hear oral argument on an appeal by John A. 
Carley, Eugene C. Geiger, Thomas A. Kaufmann, Edward H. Price, and 
Christopher H. Zacharias from an initial decision of an administrative 
law judge.
    Carley and Zacharias were officers and directors of Starnet 
Communications International, Inc. Geiger and Kaufmann were associated 
persons of Spencer Edwards, Inc., a registered broker-dealer. Price was 
president, chief executive officer, and chief compliance officer of 
Spencer Edwards and supervised Geiger and Kaufmann.
    The law judge found that Carley and Zacharias violated, and Geiger 
and Kaufmann willfully violated, Sections 5(a) and 5(c) of the 
Securities Act of 1933 by offering to sell, selling, and delivering to 
members of the public shares of Starnet common stock when no 
registration statement was filed or in effect with respect to those 
securities and no exemption from registration was available. The law 
judge found that Price failed reasonably to supervise Geiger and 
Kaufmann. The law judge found further that Carley and Zacharias 
violated the antifraud provisions of the securities laws by filing with 
the Commission false and misleading current and annual reports. The law 
judge also found that Zacharias violated Section 16(a) of the 
Securities Exchange Act of 1934 and Exchange Act Rule 16a-3 by failing 
to file a required Form 4.
    The law judge imposed cease-and-desist orders on Carley, Zacharias, 
Geiger, and Kaufmann, barred Geiger and Kaufmann from associating with 
any broker or dealer, and barred Price from associating with any broker 
or dealer in a supervisory capacity. The law judge ordered Carley and 
Zacharias each to disgorge an amount representing payments made to them 
in connection with their unregistered sale of shares of Starnet common 
stock. The law judge also ordered Geiger and Kaufmann each to disgorge 
fifty percent of the net commissions that they earned on all Starnet 
trades attributable to their joint account number at Spencer Edwards 
from January 1999 through February 2001. The law judge imposed 
penalties of $400,000 against Geiger, $300,000 against Kaufmann, and 
$150,000 against Price.
    Carley, Zacharias, Geiger, Kaufmann, and Price appeal the law 
judge's findings of violation and the sanctions imposed by the law 
judge.
    Among the issues likely to be considered are:
    (1) Whether respondents committed the alleged violations; and
    (2) If so, whether sanctions should be imposed in the public 
interest.
    The subject matter of the Closed Meeting scheduled for Wednesday, 
February 7, 2007 at 11 a.m. will be: post-argument discussion.
    The subject matter of the Closed Meeting scheduled for Thursday, 
February 8, 2007 will be: regulatory matter regarding financial 
institution; formal orders of investigation; institution and settlement 
of injunctive actions; institution and settlement of administrative 
proceedings of an enforcement nature; resolution of litigation claims; 
an adjudicatory matter; and other matters relating to enforcement 
proceedings.
    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.

    Dated: January 31, 2007.
Nancy M. Morris,
Secretary.
[FR Doc. 07-474 Filed 1-31-07; 11:02 am]

BILLING CODE 8010-01-P