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U.S. Securities and Exchange Commission

Millennium Partners, L.P. et al.

On December 1, 2005, the SEC instituted settled administrative and cease-and-desist proceedings against Millennium Partners, L.P. (“Millennium”) and certain related entities and individuals (together, the “Millennium Respondents”).  The SEC’s Order found that the Millennium Respondents conducted rapid in-and-out trading of mutual funds, known as market timing, through a deceptive scheme.  As part of the settlement, the SEC ordered the Millennium Respondents to pay approximately $148 million in disgorgement and approximately $32 million in civil penalties, for a total of approximately $180 million.  The SEC further ordered that those payments be distributed through a Fair Fund to those harmed by the Millennium Respondents’ conduct.  For more information on the SEC's action, you can read In the Matter of Millennium Partners, et al. at Release No. 33-8639 (Dec. 1, 2005). 

On October 11, 2006, in a separate proceeding, the SEC ordered Steven B. Markovitz, a Millennium trader who late traded mutual funds while at Millennium, to pay $1 in disgorgement and a $400,000 civil penalty.  The SEC ordered that this money be paid into the Millennium Fair Fund for distribution.  For more information on the SEC’s action against Markovitz, you can read In the Matter of Steven B. Markovitz at Release No. 33-8298 (Oct. 2, 2003) and Release No. 33-8748 (Oct. 11, 2006).

Under the terms of the SEC's Order in the Millennium proceeding, an Independent Distribution Consultant must submit to the SEC a distribution plan for the distribution of the Fair Fund containing the approximately $180 million to those harmed by the Millennium Respondent’s conduct.  According to the SEC's Rules of Practice, notice of the proposed Distribution Plan must be published for at least 30 days, specifying how copies of the proposed Distribution Plan may be obtained, and describing the process by which persons may comment on the Plan.  On May 31, 2007, the SEC published a Notice of Proposed Distribution Plan and Opportunity for Comment in connection with this matter.  As stated in the notice, interested parties can print a copy of the Proposed Distribution Plan from the SEC’s public website or obtain a written copy of the plan by submitting a written request to:

Timothy P. Wei
U.S. Securities and Exchange Commission
3 World Financial Center
New York, NY  10281

All persons who want to comment on the Proposed Distribution Plan may submit their comments, in writing, no later than July 2, 2007.  Comments received will be publicly available.  Persons should submit only information that they wish to make publicly available.

After publication and comment, the proposed Distribution Plan will be submitted to the SEC for approval.  When the SEC approves the proposed Distribution Plan, with modifications as appropriate, distributions will begin pursuant to that Plan.


Modified: 06/25/2007