Fremont Investment Advisors, Inc. et al.

On November 4, 2004, the SEC instituted settled administrative proceedings and cease-and-desist proceedings against Fremont Investment Advisors, Inc. and former President and CEO Nancy Tengler.  The SEC’s Order against Fremont found that Fremont entered into improper and undisclosed agreements allowing favored large investors to engage in rapid in-and-out securities trading known as market timing and charged Tengler for her role in Fremont’s misconduct.  In addition to the market timing charges, the SEC charged Fremont for allowing mutual fund trades to be placed after the 4:00 p.m. market close.  As part of the settlement, Fremont agreed to pay disgorgement of $2.146 million and a civil penalty of $2 million, while Tengler agreed to pay disgorgement of $27,000 and a civil penalty of $100,000.  For more information on the SEC’s actions, you can read In the Matter of Fremont Investment Advisors, Inc. and In the Matter of Nancy Tengler at IA-2317 and IA-2318 (Nov. 4, 2004).

Under the terms of the Fremont Order, an Independent Distribution Consultant must submit to the SEC a distribution plan for the distribution of the Fair Fund containing $4.27 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.

The SEC anticipates that Notice of the Plan will be published on or after May 2010.  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.