In the Matter of Fortress Investment Management, LLC, et al. Admin. Proc. File No. 3-19715
Oct. 6, 2022
On February 27, 2020, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Fortress Investment Management, LLC (“Fortress”), and William M. Malloy, III (“Malloy”) (collectively, the “Respondents”). In the Order, the Commission found that, improper Commission registration and failure to disclose a conflict of interest involving Malloy, and two investment adviser firms under his control, MWM 1835, LLC and Fortress violated the federal securities laws. The Commission ordered, and the Respondents have paid a total of $154,097.00 in disgorgement, prejudgment interest, and civil money penalties to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties, along with the disgorgement and prejudgment interest, collected can be distributed to those harmed by the Respondents’ conduct described in the Order (the “Fair Fund”). See the Commission’s Order: Release No. IA-5452.
On April 8, 2020, 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. 34-88597.
On November 23, 2020, the Commission published a notice of proposed plan of distribution and opportunity to comment and simultaneously published the proposed plan of distribution (the “Proposed Plan”). The Proposed Plan proposes Noel Gittens, a Commission employee, serve as the Fund Administrator to oversee the administration and distribution of the Fair Fund. The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-90483 and the Proposed Plan.
On January 14, 2021, the Commission issued an order approving the Proposed Plan and simultaneously posted the approved Plan of Distribution (the “Plan”). See the Commission’s Order: Release No. 34-90924 and the Plan
On April 8, 2021, the Commission issued an order approving the disbursement of $145,096.20 from the Fair Fund for distribution to eligible investors in accordance with the Plan. See the Commission’s Order: Release No. 34-91508.
For more information, please contact the Commission:
Office of Distributions