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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bishop who wrote (9153)	7/9/1998 10:00:00 PM
From: Arcane Lore	Read Replies (3) \| Respond to of 34075

Have you checked out "Wells Submissions"? (re:TT and the May 22 release) I have had no time yet, but after reading Yoav's post I see that it talks about sending out "Well's Notices" to traders notifying them that they are about to be charged. This Wells musta been a scary guy. The above, of course, is in reference to the following mention of a Wells Submission from MINE's recent 8-K: "...The Staff of the Central Regional Office of the SEC has notified Registrant that it is considering recommending to the Commission the amendment of its current action against Registrant to include violations [including Section 10(b)(5)] which may have resulted from the May 22, 1998 press release. That notification also permits Registrant, as well as its president, Mr. Terry C. Turner, to make a Wells Submission, which is a written statement setting forth their legal position regarding the May 22, 1998 press release. ..." While a company or individual may have the privlege of being permitted to make a Wells Submission, it is no honor. It is often the last opportunity offered to a party being investigated to respond to the SEC prior to SEC initiating a civil enforcement action. From the SEC rules of practice: "... The disciplinary process is substantially changed and now provides for the staff rather than committees to authorize complaints. To ensure a fair process and accountability now that the staff is vested with authority to authorize complaints, I have established a process within NASD Regulation whereby the Enforcement Department and the new Office of Disciplinary Policy will approve staff recommended enforcement actions. Specifically, a case authorization unit within the Enforcement Department will review investigations to ensure that all necessary evidence is gathered and that a prima facie case exists prior to the issuance of a formal complaint. Furthermore, prior to the issuance of a complaint, potential respondents will generally have an opportunity to submit a written statement, referred to as a Wells Submission, explaining why anticipated charges should not be brought. ..." sec.gov How often are Wells Submissions followed by SEC enforcement actions? Probably only the SEC knows for sure, but I found an instance of an law firm touting their skills based on successful Wells Submissions in all of two cases: "We represented the outside counsel to an investment advisor under investigation by the SEC for violations of the Investment Advisors Act of 1940 for improper use of "soft dollars." After filing a novel Wells submission, including an expert opinion on the appropriate role of outside counsel, our client was not charged by the SEC." "SR&Z represented numerous employees of Kidder Peabody & Co. Inc., in connection with investigations by the United States Attorney's Office, Securities and Exchange Commission and New York Stock Exchange stemming from a massive fraud engineered by a bond trader at the firm. Although the SEC considered bringing charges against one of our clients, a senior officer, for failure to supervise the bond trader, the firm prepared a Wells submission that ultimately persuaded the SEC not to bring charges against that individual or any other person we represented." srz.com