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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 61210 / December 18, 2009

ADMINISTRATIVE PROCEEDING
File No. 3-11579


In the Matter of

Inviva, Inc. and Jefferson National Life Insurance Company

Respondents.



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NOTICE OF PROPOSED PLAN OF DISTRIBUTION AND OPPORTUNITY FOR COMMENT

Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission’s (“Commission”) Rules of Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed plan for the distribution of the Fair Fund in this matter (“Distribution Plan”).

On August 9, 2004, the Commission entered an Order instituting settled administrative and cease-and-desist proceedings against Inviva, Inc. (“Inviva”) and Jefferson National Life Insurance Company (“Jefferson National”) (together, “Respondents”) in this matter (“Order”). In the Matter of Inviva, Inc. and Jefferson National Life Insurance Company, Admin. Proc. File No. 3-11579, Securities Act of 1933 Release No. 8456 (Aug. 9, 2004). In the Order, the Commission authorized the establishment of a Fair Fund, comprised of $5,000,000 in disgorgement and penalties paid by Respondents, for distribution to investors affected by certain market timing trading through Jefferson National’s variable annuity products. The Order provided that the Fair Fund was to be distributed pursuant to a distribution plan developed by an Independent Distribution Consultant.

OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested parties are advised that they may print a copy of the Distribution Plan from the Commission’s public website, http://www.sec.gov. Interested parties may also obtain a written copy of the Distribution Plan by submitting a written request to George S. Canellos, Regional Director, United States Securities and Exchange Commission, 3 World Financial Center, Room 400, New York, NY 10281. All persons who desire to comment on the Distribution Plan may submit their comments, in writing, within 30 days of the date of this Notice:

  1. by sending a letter to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549-1090;
     
  2. by using the Commission’s Internet comment form (http://www.sec.gov/litigation/admin.shtml); or
     
  3. by sending an e-mail to rule-comments@sec.gov.

Comments submitted by email or via the Commission’s website should include “Administrative Proceeding File Number 3-11579” in the subject line. Comments received will be available to the public. Persons should only submit information that they wish to make publicly available.

DISTRIBUTION PLAN

The Fair Fund is comprised of the $5,000,000 paid by Inviva and Jefferson National, plus accumulated interest, less any federal, state, or local taxes on the interest. The Distribution Plan provides for distribution of the Fair Fund to eligible investment company portfolios identified in the plan that were harmed by the actions of certain market timers that Respondents permitted to market time Jefferson National variable annuities despite prospectus disclosures between October 2002 and September 2003. If the Distribution Plan is approved, eligible investment company portfolios will receive proportionate shares of the Fair Fund as calculated by the Independent Distribution Consultant. The shares will be calculated from information in Respondents’ records, and records obtained from third-parties. Eligible investment company portfolios will not need to go through a claims process.

By the Commission:

Elizabeth M. Murphy
Secretary

See also Proposed Distribution Plan


http://www.sec.gov/litigation/admin/2009/34-61208.htm


Modified: 12/18/2009