TAX NEWS - may 2010
SEC Announces $178 Million Distribution from Millennium Fair Fund
"The total distribution of more than $178 million in this case further demonstrates the SEC's commitment to holding wrongdoers accountable and recovering funds for injured investors from illegal activity," said George Canellos, Director of the SEC's New York Regional Office.
The Sarbanes-Oxley Act of 2002 gave the SEC authority to increase the amount of money returned to injured investors by allowing civil financial penalties to be included in distributions. Prior to Sarbanes-Oxley, only ill-gotten gains could be returned to investors.
In 2005, the SEC brought an enforcement action charging Millennium Partners, L.P., Millennium Management, L.L.C., Millennium International Management, L.L.C., and several individuals with devising and carrying out a fraudulent scheme to avoid detection and circumvent restrictions that mutual funds imposed on market timing. The Millennium Fair Fund distribution fully reimburses the recipient mutual funds and annuities for their injury from the market timing. Pursuant to the Plan of Distribution, any remaining funds will be sent to the U.S. Treasury.
Investor questions regarding the distribution should contact the Millennium Fair Funds administrator, Boston Financial Data Services, Inc. at (888) 402-5787.