In the Matter of deVere USA, Inc. Admin. Proc. File No. 3-18527
Sept. 21, 2022
On June 4, 2018, the Commission instituted and simultaneously settled administrative proceedings (the “Order”) against deVere USA, Inc. (the “Respondent”). In the Order, the Commission found that from June 2013 and March 2016, the Respondent violated securities laws by providing investment advice to its clients without disclosing arrangements in which the Respondent was compensated for recommending certain investment products. The Commission ordered the Respondent to pay a civil money penalty of $8,000,000.00. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalties paid can be distributed to those harmed by the Respondent’s misconduct described in the Order (“Fair Fund”). See the Commission’s Order: Release No. IA-4933.
The Respondent has paid $8,000,000.00 into the Fair Fund for distribution to harmed investors.
On June 14, 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. 34-83443.
On November 16, 2018, the Commission issued an order appointing Analytics Consulting, 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. 34-84607.
On March 23, 2020, the Commission published a notice of proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (the “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. 34-88452 and the Proposed Plan.
The Proposed Plan provides for the distribution of the Net Fair Fund to those harmed investors previously identified by Commission staff in accordance with the Plan of Allocation of the Proposed Plan.
On May 21, 2020, the Commission issued an order extending the time to enter an order approving or disapproving the Proposed Plan until July 31, 2020. See the Commission’s Order: Release No. 34-88919.
After consideration of the comments received on the Proposed Plan, the Commission modified the Proposed Plan to clarify the application of the methodology (the “Modified Plan”). On August 17, 2020, the Commission issued an order approving the Modified Plan and simultaneously posted the Modified Plan. See the Commission’s Order: Release No. 34-89588 and the Modified Plan.
On September 16, 2021, the Commission issued an order approving the disbursement of $8,329,307.19 from the Fair Fund for distribution to eligible investors. See the Commission’s Order: Release No. 34-93020.
On March 16, 2023, the Commission issued an order approving the disbursement of $508,861.64 from the Fair Fund to be added to the residual $10,197.56 remaining in the Fair Fund’s escrow account for a total distribution of $519,059.20 by the Fund Administrator to eligible investors. See the Commission’s Order: Release No. 34-97153.
For more information, please contact the Commission:
Office of Distributions