SEC Announces $18 Million Fair Fund Distribution to Investors Affected by Undisclosed Market Timing in Janus Mutual Funds
FOR IMMEDIATE RELEASE
Washington, D.C., Aug. 15, 2008 — The Securities and Exchange Commission today distributed more than $18 million to more than 325,000 investors who were affected by undisclosed market timing in certain mutual funds managed by Denver-based Janus Capital Management LLC (JCM).
The distribution is the first in a series that will return approximately $100 million to harmed investors as part of the Commission's 2004 settlement with JCM. The firm had been charged with facilitating undisclosed market timing in some of its mutual funds.
"This case provides a tremendous amount of satisfaction to our staff as we are able to provide funds to hundreds of thousands of harmed investors," said Dick D'Anna, Director of the SEC's Office of Collections and Distributions. "We look forward to completing the full distribution in the coming months."
Donald M. Hoerl, Acting Regional Director of the SEC's Denver Regional Office, said, "We are very pleased to begin distributing money in the Fair Fund to Janus investors harmed by market timing misconduct. This distribution is another example of the Commission's ongoing commitment to return money to injured investors."
The Fair Fund provision of the Sarbanes-Oxley Act of 2002 provides the SEC with authority to distribute financial penalties along with disgorgement to injured investors. Since 2002, more than $4 billion has been returned to investors.
The SEC brought and settled public administrative and cease-and-desist proceedings in 2004 against JCM. Without admitting or denying the Commission's allegations, JCM consented to a Commission Order charging anti-fraud violations and requiring the respondents to pay $50 million in disgorgement and $50 million in civil penalties for distribution through a Fair Fund. In addition to disgorgement and civil penalties, JCM also consented to a cease-and-desist order and a censure, and agreed to undertake certain compliance and mutual fund governance reforms.
The Fair Fund Administrator responsible for distribution is Rust Consulting, Inc. Investor questions regarding the distribution may be directed to Rust at (800) 419-5292. Information regarding the distribution can also be obtained at http://www.JCMFairFund.com.
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Modified Plan of Distribution:
April 25, 2008 Order Approving the Modified Plan of Distribution:
August 18, 2004 Order Instituting Administrative and Cease-and-Desist Proceedings:
For more information, contact:
Donald M. Hoerl, Acting Regional Director
Amy Norwood, Assistant Regional Director
SEC's Denver Regional Office