In the Matter of MVP Manager LLC Admin. Proc. File No. 3-19334
Oct. 14, 2022
On August 13, 2019, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the "Order") against MVP Manager LLC ("MVP" or the "Respondent"). In the Order, the Commission found that MVP failed to adequately disclose to MVP clients or to investors in the client funds the potential or actual conflict of interest arising from MVP personnel's receipt of brokerage commissions from counterparties to certain transactions with MVP's advisory-client funds. The Order required the Respondent to pay a total of $249,740.30 in disgorgement, prejudgment interest, and a civil money penalty to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the civil money penalty, along with the disgorgement and interest, can be distributed to harmed investors. See the Commission's Order: Release No. IA-5319.
The Fair Fund consists of the $249,740.30 paid by the Respondent.
On October 15, 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. 34-90187.
On January 24, 2022, 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 Proposed Plan proposes David H. London, 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. 34-94035 and the Proposed Plan.
The Proposed Plan provides that the distribution of the Fair Fund shall be made to those investors harmed by MVP’s failure to disclose conflicts of interest, between January 2015 and January 2016, in connection with investments in two different funds managed by MVP that offered interests to investors by series, with each series investing in a single pre-initial public offering company, and who suffered a recognized loss as calculated by the methodology used in the plan of allocation in the Plan.
On March 24, 2022, the Commission issued an order approving the Proposed Plan, as modified, and simultaneously posted the approved modified plan of distribution (the “Plan”). See the Commission’s Order: Release No. 34-94510 and the Plan.
For more information, please contact the Commission:
Office of Distributions