CLOSED MEETING - FRIDAY, JUNE·30, 1989 - 10:00 a.m.
The subject matter of the June 30, 10:00 a.m., closed meeting will be: Settlement of
injunctive actions; Settlement of administrative proceedings of an enforcement nature;
Institution of injunctive actions; Institution of administrative proceedings of an
enforcement naturei and Discussion of investigation.
CLOSED MEETING - FRIDAY, JUNE 30, 1989 - 2:00 p.m.
The subject matter of the June 30, 2:00 p.m., closed meeting will be: Administrative
proceedings of an enforcement nature; Litigation matters; and Opinion.
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:
Anthony Ain at (202) 272-2400.

CIVIL PROCEEDINGS
COMPLAINT NAMES GATEWAY MEDICAL SYSTEMS, INC., JAMES R. CHEEK
The Commission, on June 21, filed a complaint in the U.S. District Court for the
District of Columbia against Gateway Medical systems, Inc. and James R. Cheek,
Gateway's Chairman and Chief Executive Officer, alleging violations of the antifraud
provisions of the Securities Exchange Act of 1934 and violations by Gateway of Rule
12b-25. Without admitting or denying the allegations in the Complaint, the defendants
have consented to the entry of Final Judgments of Permanent Injunction enjoining them
from committing further violations of the federal securities laws.
The Complaint alleges that the defendants issued materially false and misleading
statements projecting record earnings for Gateway's 1987 fiscal year, and that Gateway
filed with the Commission a -Notification of Late Filing- on Form 12b-25, in which
Gateway stated that it anticipated fiscal 1987 net earnings significantly greater
than the previous year's net income.
The complaint alleges that the defendants were, at a minimum, reckless in not knowing
that the income projections had no reasonable basis, and that the projections were
materially false and misleading due to the defendants' failure to adequately disclose
the company's severe liquidity problems.
(SEC v. Gateway Medical Systems, Inc. and
James R. Cheek, U.S.D.C. for the District of Columbia, CA 89-1760)
(LR-12137)

INVESTMENT COMPANY ACT RELEASES
VENTURE TRUST TAX-FREE MONEY MARKET FUND
A notice has been issued giving interested persons until July 17 to request a hearing
on an application of Venture Trust Tax-Free Money Market Fund for an order under
Section 8(f) of the Investment Company Act, declaring that it has ceased to be an
investment company.
(ReI. IC-17018 - June 20)
INTERACT PORTFOLIO SERIES; SISCO FUND;
HENDERSON INTERNATIONAL EQUITY FUND;
CASHMAN FARRELL FUNDi TRUSTFUNDS CASH
RESERVE TRUSTi ZETA MUTUAL TRUST
Orders have been issued declaring that each of the following has ceased to be an
investment company:
Interact Portfolio Series (ReI. IC-17017)i Sisco Fund (ReI.
IC-17019); Henderson International Equity Fund, Inc. (ReI. IC-17020); Cashman Farrell
Fund, Inc. (ReI. IC-17021l; Trustfunds Cash Reserve Trust (ReI. IC-17022), and Zeta
Mutual Trust (Rel. IC-17022), all dated June 20.

SELF-RECUUTORY ORGANIZADONS
ACCELERATED APPROVAL OF PROPOSED RULE CHANGE
The Commission has granted accelerated approval to a proposed rule change filed by

the American Stock Exchange (SR-AMEX-89-14) to provide for the listing of taxable

municipal securities for a 120-day period ending on October 14, 1989.

(ReI. 34-26942)

2

NEWS DIGEST, June 23, 198