In the Matter of BlueCrest Capital Management Limited Admin. Proc. File No. 3-20162
Aug. 29, 2022
On December 8, 2020, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against BlueCrest Capital Management Limited (“BlueCrest”). These proceedings arise from the management of a proprietary hedge fund, BSMA Limited (“BSMA”), by previously registered investment adviser BlueCrest Capital Management Limited, f/k/a BlueCrest Capital Management LLP. In the Order, the Commission found that, from October 2011 through December 2015, BlueCrest engaged in a course of conduct stemming from its management of BSMA that was detrimental to investors in BlueCrest’s flagship client hedge fund, BlueCrest Capital International.
The Commission ordered BlueCrest to pay a total of $170,000,000.00 in disgorgement, prejudgment interest, and civil money penalty to the Commission. The Commission also created a Fair Fund so the penalty, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondent’s conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release Number: 33-10896.
The Respondent has paid the full $170,000,000 to the Commission. The Fair Fund has been deposited in an interest-bearing account at the U.S. Treasury’s Bureau of Fiscal Service.
On April 16, 2021, the Commission appointed Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-91588.
On June 3, 2021, the Commission issued an order appointing Kurtzman Carson Consultants, LLC as the Fund Administrator to oversee the administration and distribution of the Fair Fund and set the administrator’s bond amount. See the Commission’s Order: Release No. 34-92097.
On November 2, 2021, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-93508 and the Proposed Plan.
The Proposed Plan provides that the distribution of the Fair Fund shall be made to investors identified by Commission staff during its investigation of the underlying securities violation or otherwise, in accordance with the methodology detailed in the Proposed Plan.
On February 18, 2022, the Commission issued a corrected order approving the Proposed Plan and simultaneously posted the approved Plan of Distribution (the “Plan”). See the Commission’s Order: Release No. 34-94285 and the approved Plan of Distribution.
For more information, please contact the Fund Administrator: