Another Fair Fund distribution sent; more to come?

Jim Kim — Mon, 23 Jun 2008 08:49:13 -0400

Recall that the Sarbanes-Oxley Act gave the Securities and Exchange Commission the authority to distribute the fines it collects from law-breaking companies to aggrieved investors. Since then, nearly $4 billion has been distributed, stemming from cases involving MCI, Enron, Qwest and others. Dow Jones, via CNNMoney.com, reports that another distribution is now underway. The SEC has sent more than $103 million to 130,000 people and 380 mutual funds that lost money because of market timing and late trading by Banc of America Capital Management and its affiliates. This is the first of several that will ultimately reimburse more than 1.5 million investors and 525 funds. We may see more distributions from mutual fund abuse cases.

For more:
- here's the Dow Jones article

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More fraud, smaller penalties

Fair fund distribution

Another Fair Fund distribution sent; more to come?