Fred Alger Management, Inc. and Fred Alger & Company Incorporated.

On January 18, 2007, the SEC instituted settled administrative and cease-and-desist proceedings against respondents Fred Alger Management, Inc. and Fred Alger & Company, Incorporated.  The SEC’s Order found that respondents allowed rapid in-and-out trading, known as market timing, in Alger mutual funds contrary to the information in the prospectuses for those funds.  As part of the settlement, Fred Alger Management, Inc. and Fred Alger & Company, Incorporated agreed to pay $40 million, including disgorgement of $30 million and civil penalties of $10 million.  For more information on the SEC’s action, you can read In the Matter of Fred Alger Management, Inc. and Fred Alger & Company, Incorporated, 34-55118 (Jan. 18, 2007).

Under the terms of the SEC's Order, an Independent Distribution Consultant must submit a distribution plan to the SEC for the distribution of the Fair Fund containing $40 million to investors.  According to the SEC's Rules of Practice, notice of the proposed Distribution Plan must be published for at least 30 days, specifying how copies of the proposed Distribution Plan may be obtained, and describing the process by which persons may comment on the Plan.  A link to that Notice will be provided on this website and the Notice will be published in the SEC Docket.  

After publication and comment, the proposed Distribution Plan will be submitted to the SEC for approval.  When the SEC approves the proposed Distribution Plan, with modifications as appropriate, distributions will begin pursuant to that Plan.

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