Massachusetts Financial Services Co., John W. Ballen, and Kevin R. Parke
Latest Action: Beginning in September 2006, the SEC distributed $312,042,489.07
to investors of Massachusetts Financial Services Co.
(MFS) who were injured by widespread market timing trading in certain MFS
mutual funds. As a result of checks not being presented for payment within the
prescribed time period and checks returned as undeliverable, the SEC has found
that there is a significant amount of funds in the Fair Fund. The SEC has
determined to reissue certain checks in accordance with its Order Modifying
Distribution Plan and Directing Disbursement. Investors can
obtain additional information by visiting http://www.Rust-MFSSettlement.com or by
calling the Administrator of the Distribution Plan at 1-866-216-0283.
Background: On February 5,
2004, the SEC instituted and settled administrative and cease-and-desist
proceedings against Massachusetts Financial Services Co., John W. Ballen, and
Kevin R. Parke for violating federal securities laws by allowing widespread
market timing trading in certain MFS mutual funds in contravention of those
fundsí public disclosures. For more information on the SECís action, you can
read In the Matter of Massachusetts Financial Services Co., John W. Ballen
and Kevin R. Parke at IA-2213
(Feb. 5, 2004). As required by the SECís Order, MFS paid $175 million in disgorgement
and a $50 million civil penalty, and Ballen and Parke each paid a civil penalty
of $250,000 and disgorged over $50,000.