In the Matter of UBS Willow Management L.L.C., et al.
Admin. Proc. File No. 3-16909
On October 19, 2015, the Commission instituted and simultaneously settled proceedings (the “Order”) against UBS Willow Management L.L.C. and UBS Fund Advisor L.L.C. (collectively, the “Respondents”). The Commission found that, from the fall of 2008 to 2012, the Respondents violated federal securities laws by failing to supervise UBS Willow Management and allowing them to deviate from the principal investment strategy without adequately disclosing to the Fund’s Board or investors.
As part of the settlement, the Respondents undertook being responsible for compensating harmed investors in the amount of $13,126,730 (“Distribution Fund”), which was to be comprised of the investor losses of $4,903,620.00 and the disgorgement ordered, $8,223,110.00. The Commission also ordered the Respondents to pay prejudgment interest of $1,373,436.74 and a civil money penalty of $3,000,000.00 to be remitted to the United States Treasury. The Order provides for the Respondents to deposit the Distribution Fund into an escrow account, acceptable to staff. The Respondents are responsible for distributing the Distribution Fund in accordance with the Order. Tax compliance and any related administrative expenses are the responsibility of the Respondents. The Order requires that the Respondents submit to the Commission staff a final accounting and certification of the disposition of the Distribution Fund within 90 days of the Order. See the Commission’s Order: Release No. 33-9964.
The Respondents successfully distributed $13,048,919.16 to 1,656 investors and on November 16, 2017, the Commission ordered the remaining funds to be transferred to the U.S. Treasury. See the Commission’s Order: Release No. 34-82096.