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Reports US

US stock market daily report (December 05, 2013, Thursday)

December 6, 2013, Friday, 03:18 GMT | 22:18 EST | 07:48 IST | 10:18 SGT
Contributed by Millennium Traders


Securities and Exchange Commission announced on Tuesday December 4, 2013, the U.S. District Court for the District of Massachusetts entered final judgments against Arnett L. Waters of Milton, Massachusetts and two entities that he controlled, broker-dealer A. L. Waters Capital, LLC and investment adviser Moneta Management, LLC, defendants in an enforcement action filed by the Commission in May 2012.

On an emergency basis in order to halt the defendants' fraudulent sales of fictitious investment-related partnerships, the SEC filed its action. The final judgment, which the defendants consented, enjoins them from violating the antifraud provisions of the federal securities laws. The Court found the defendants jointly and severally liable for $839,000 in disgorgement, which has been deemed satisfied by a restitution order of over $9 million in a parallel criminal proceeding.

The SEC enforcement action filed May 1, 2012 alleged that from 2009-2012, Waters, A. L. Waters Capital and Moneta Management engaged in a fraudulent scheme through which they raised at least $780,000 from at least 8 investors, including $500,000 from Waters' church. The group promised to use December 3, 2012 funds to purchase a portfolio of securities, but instead misappropriated the money and spent it on personal and business expenses.

A preliminary injunction order was entered by the Court on May 3, 2012 that, among other things, froze defendants' assets, as well as those of two relief defendants, one of whom was Waters' wife and required them to provide an accounting of all their assets to the Commission.

Waters pleaded guilty to the criminal contempt charges on October 2, 2012 and on December 3, 2012 the SEC barred Waters from the securities industry based on his guilty plea in the criminal contempt action. Waters was charged with an array of securities fraud and other violations by U.S. Attorney for the District of Massachusetts on October 17, 2012. Waters pleaded guilty to sixteen counts of securities fraud, mail fraud, money laundering and obstruction of justice arising out of both the conduct that is the subject of the Commission's civil action and the criminal scheme through which Waters defrauded clients of his rare coin business out of as much as $7.8 million, on November 29, 2012. The criminal information to which Waters pleaded guilty, further alleged that he engaged in money laundering through two transactions totaling $77,000.

Waters pleaded guilty to obstruction of justice in connection with multiple misrepresentations to SEC staff, including that there were no investors in his investment-related partnerships, in order to conceal the fact that investor money was misappropriated in a fraudulent scheme. Waters was sentenced on April 26, 2013 to 17 years in federal prison and three years of supervised release, and was ordered to pay $9,025,691 in restitution and forfeiture, as a result of his guilty plea to his criminal conduct.

Medtronic Activa Deep Brain Stimulation
In an effort to treat neurological disorders such as Parkinson’s disease, dystonia, tremor, and obsessive-compulsive disorder, Medtronic, Inc. (MDT-NYSE) on Thursday said they developed a system that uses electronic pulses to stimulate the brain and record its activity. The devise is similar to a pacemaker and trained clinicians can adjust the pulses noninvasively.

The devise, known as Activa Deep Brain Stimulation, has yet to be approved in the U.S. for commercial use and is available only to a select few doctors for test purposes at Stanford Hospital & Clinics, San Francisco Medical Center and University of California. In January, Activa won approval from European regulators and is in use there for research purposes.

At Ludwig Maximilian University in Munich, Activa has been in place since August. In November, a patient in Munich with tremor issues, received an implant of the Activa which is used to deliver and receive the electronic pulses.