SEC: $78 Million Fair Fund Distribution to Harmed Investors in AIM Mutual Funds
By admin - Posted on June 2nd, 2009
Washington, D.C., June 1, 2009 — The Securities and Exchange Commission today announced the Fair Fund distribution of more than $78 million to more than 590,000 investors who were affected by undisclosed market timing in certain AIM mutual funds.
The Fair Fund distribution stems from a prior SEC enforcement action against AIM Advisors, Inc., which advised the funds, and AIM Distributors, Inc. (ADI), which distributed the funds. In addition, this distribution includes money from two other Fair Funds, which are related to separate unlawful market timing enforcement actions that affected AIM investors.
Specifically, the AIM Fair Fund includes $50 million in disgorgement and penalties collected from AIM Advisors and ADI after the Commission brought settled administrative and cease-and-desist proceedings against them in 2004, as well as accrued interest. This distribution also includes approximately $11 million in disgorgement, penalties and accumulated interest from the Banc of America Capital Management LLC, BACAP Distributors LLC, and Banc of America Securities LLC Fair Fund; and approximately $12.4 million in disgorgement, penalties and accumulated interest from the Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp. Fair Fund.
The Sarbanes-Oxley Act of 2002 (SOX) gave the SEC authority to increase the amount of money returned to injured investors by allowing civil penalties to be included in Fair Fund distributions. Prior to SOX, only disgorgement could be returned to investors. The SEC has returned more than $5 billion in Fair Funds to investors since gaining this new authority after the passage of SOX.
The Fair Fund Administrator responsible for this distribution is Boston Financial Data Services, Inc. (BFDS). Investor questions regarding the distribution may be directed to BFDS at (866) 700-0226. Information regarding the distribution can also be obtained at http://www.aimfairfund.com.
Source: SEC
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