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In the Matter of Visium Asset Management, LP Admin. Proc. File No. 3-18473

Nov. 1, 2022

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.

On March 25, 2019, 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. 34-85403 and the Proposed Plan.

Comments were received on the Proposed Plan during the 30-day comment period. On May 10, 2019, the Commission issued an order extending the time to enter an order approving or disapproving the plan of distribution to August 22, 2019 to allow for further evaluation and analysis to properly address the comments.  See the Commission’s Order: Release No. 34-85827

On July 8, 2019, the Commission issued an order approving a plan of distribution and simultaneously posted the approved plan of distribution (the “Plan”).  See the Commission’s Order: Release No. 34-86330 and the Plan

The Fund Administrator has sent the Plan Notice to potentially eligible investors. See the Plan Notice.

Pursuant to the Plan Notice, in order to be considered for eligibility under the Plan, you must return a completed and executed Excluded Entity Certification Form to the Fund Administrator by October 21, 2019. A copy of the form can be found here

On June 22, 2020, the Commission issued an order directing the disbursement of $3,390,866.12 from the Fair Fund for distribution to harmed investors in accordance with the Plan. See the Commission’s Order: Release No. 34-89112.

For more information, please contact the Fund Administrator:

Telephone Number: 877-282-6682

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