In the Matter of Visium Asset Management, LP
Admin. Proc. File No. 3-18473
On May 8, 2018, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Visium Asset Management, LP (the “Respondent”). In the Order, the Commission alleged that, from at least July 2011 to December 2012, the Respondent, though two of its portfolio managers, engaged in a mismarking scheme, using sham broker quotes to falsely inflate the value of securities held by a fund for which the Respondent acted as an investment adviser. The Commission ordered, and the Respondent has paid, disgorgement of $4,755,223, prejudgment interest of $720,711, and a civil money penalty of $4,755,223. See the Commission’s Order: Release No. 33-10494.
On August 30, 2018, the Commission issued an order establishing a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, can be distributed to investors harmed by the Respondent’s conduct described in the Order. See the Commission’s Order: Release No. 34-83998.
Also on August 30, 2018, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-84004.
On November 16, 2018, the Commission issued an order appointing KCC, LLC as the Fund Administrator of the Fair Fund and set the administrator’s bond amount. See the Commission’s Order: Release No. 34-84608.
For more information, please contact the Commission:
Office of Distributions