Fred Alger Management, Inc. and Fred Alger & Company, Incorporated
Admin Proc. File No. 3-12540
On January 18, 2007, the Commission instituted and simultaneously settled proceedings against Fred Alger Management, Inc. and Fred Alger & Company, Incorporated ("Alger Inc".) (collectively, "Alger"). The Commission found that Alger allowed market timing and late trading of mutual funds in the Alger Fund Group (Alger Fund), which contradicted representations set out in the Statement of Additional Information attached to the Alger Fund's prospectuses that limited shareholders to six exchanges per year. Additionally, Alger failed to disclose that Alger Inc. had entered into numerous arrangements with select investors, including "sticky asset" arrangements, to permit them to time the Alger Fund portfolios. The Commission required Alger to pay $30,000,000 in disgorgement and $10,000,000 as a civil penalty, and created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002. See the Commission's order, Release No. 34-55118.
On June 8, 2007, the Commission issued an order appointing Damasco and Associates as the Tax Administrator. See the Commission's order, Release No. 34-55888.
On May 5, 2015, the Commission issued a notice of the proposed plan of distribution and opportunity for comment and simultaneously provided a link to the proposed plan of distribution. The notice provided persons 30 days to submit their comments on the proposed plan of distribution. See the Commission's notice, Release No. 34-74871, and the proposed plan of distribution, Release No. 34-74871-pdp.
On July 23, 2015, the Commission issued an order appointing Rust Consulting, Inc. as the fund plan administrator and setting the fund plan administrator's bond amount. See the Commission's order: [Release 34-75515].
Persons to Contact:
Fund Plan Administrator: Liz Nelson, Rust Consulting, Inc., (612) 359-2837, email@example.com