In the Matter of Haidar Capital Management, LLC, et al. Admin. Proc. File No. 3-12678

On July 6, 2007, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Haidar Capital Management, LLC, Haidar Capital Advisors, LLC (together, “Haidar Advisors”), and Said N. Haidar (“Haidar”) (collectively, the “Respondents”).  The Commission found that, from April 2001 to September 2003, the Respondents engaged in deceptive tactics to hide Haidar Advisors’ identity from mutual funds, and otherwise facilitate Haidar Advisors’ market timing strategies. The Commission ordered the Respondents to pay a total of $4,580,000.00 in disgorgement, prejudgment interest, and a civil money penalty.  The Commission also established a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondents’ misconduct. See the Commission’s order: Release No. 33-8820.

The Respondents have paid $4,580,000.00 into the Fair Fund for distribution to harmed investors.

On December 5, 2007, the Commission issued an order appointing Damasco & Associates LLP (“Damasco”) as the Tax Administrator of the Fair Fund. Damasco was acquired by Miller Kaplan Arase LLP and on June 30, 2017, the Commission issued a notice of name change for the Tax Administrator.

On April 13, 2010, the Commission issued a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”).  The Proposed Plan proposed Rust Consulting, Inc. (“Rust”), as the Fund Administrator to oversee the administration and distribution of the Fair Fund.  The notice provided the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s notice: Release No. 34-61897 and the Proposed Plan.

On June 1, 2010, the Commission issued an order that approved the plan of distribution (“Plan”), appointed Rust as the Fund Administrator and waived the Fund Administrator’s bond. See the Commission’s order:  Release No. 34-62200 and the Plan.

The Plan provides for distribution of the Fair Fund among the mutual funds that had marketing arrangements with the Respondents that are the subject of the Order during the period from April 2001 through September 2003; or, in the case of mutual funds that have been merged into other mutual funds, to their successors in interest.

On January 13, 2017, the Commission issued an order directing the disbursement of $4,592,389.92 from the Fair Fund for distribution to eligible investors in accordance with the Plan. See the Commission’s order: Release No. 34-79803.

For more information, please contact the Fund Administrator:

Rust Consulting, Inc.
Telephone Number: 800-999-7940
Email: info@rustconsulting.com
Website: www.rustconsulting.com