U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp.

Latest Action: On May 15, 2009, the SEC announced the first distribution to mutual fund shareholders and mutual funds harmed as a result of market timing and late trading through Bear Stearns. From the approximate $267 million for disbursement, the SEC distributed $216 million to more about 761,000 shareholders and more than 1,000 affected funds. Investors can obtain additional information about the distribution by calling Rust Consulting, Inc., the Fair Fund Administrator, at (888) 356-0259, and by visiting http://www.bearstearnsfairfundsettlement.com. Please note the distribution is not being made under a claims process so that those eligible for distributions do not need to contact the SEC to receive a payment.

You should be aware that web pages with addresses very similar to the Fair Fund Administrator’s actual page (including site addresses with variations and incorrect spellings of the name “Bear Stearns & Co.”) have been established. If you believe you may be an eligible claimant, you should make sure you receive information only from the Fair Fund Administrator’s web page, http://www.bearstearnsfairfundsettlement.com.

Background: On March 16, 2006, the SEC instituted and settled administrative and cease-and-desist proceedings against Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp. The SEC alleged that Bear Stearns facilitated unlawful late trading and deceptive market timing of mutual funds by its customers and customers of its introducing brokers.

As part of the settlement, the respondents paid $250 million, consisting of $160 million in disgorgement and $90 million in civil penalties for distribution to the mutual funds and shareholders harmed as a result of market timing and late trading. For more information on the SEC’s action, you can read In the Matter of Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp., 33-8668 (Mar. 16, 2006).

 

 


http://www.sec.gov/divisions/enforce/claims/bearstearns.htm


Modified: 08/18/2009