SEC Press press_release 5 KB 1,974 chars

Press Release: SEC Announces Second of Three Disbursements From $267 Million Pilgrim Baxter Fair Fund

Release: 2007-113

summary

The SEC distributed $73 million to investors harmed by fraudulent market timing orchestrated by Pilgrim Baxter & Associates, Ltd. between June 1998 and December 2001, with a total $267 million Fair Fund compensating over 384,000 account holders after civil penalties and disgorgement, following the April 2007 $125 million disbursement and ahead of a final payment before September 30, 2007.

paragraph

The SEC announced a $73 million disbursement as the second of three payments from a $267 million Fair Fund created to compensate investors harmed by fraudulent market timing in the PBHG Funds from June 1998 to December 2001. Pilgrim Baxter & Associates, Ltd., the investment adviser, allowed favored clients to engage in rapid, disruptive trading that diluted returns for long-term investors, leading to SEC enforcement actions resulting in civil penalties and disgorgement. The first distribution of $125 million occurred in April 2007, and the final payment, expected before September 30, 2007, will complete compensation for more than 384,000 affected account holders.

narrative

Between June 1998 and December 2001, Pilgrim Baxter & Associates, Ltd., the investment adviser to the PBHG Funds, engaged in fraudulent market timing by permitting favored clients to conduct rapid, disruptive trades that harmed long-term investors by diluting returns. The SEC initiated enforcement actions against Pilgrim Baxter and its executives, resulting in civil penalties and disgorgement, which formed the basis of a $267 million Fair Fund to compensate affected investors. The first disbursement of $125 million was made on April 23, 2007, followed by the second distribution of $73 million on June 13, 2007, targeting a second group of eligible account holders. The final disbursement, anticipated before September 30, 2007, will complete the allocation to over 384,000 investors who held accounts in the affected PBHG Funds. The distribution plan was court-approved and administered through a dedicated portal with public access to documents and claims information. This case was part of a broader SEC initiative to recover and return funds to defrauded investors, contributing to over $1.8 billion in total Fair Fund distributions to date. The SEC’s actions underscored its commitment to holding investment advisers accountable for market timing abuses and restoring investor confidence in mutual fund integrity.

Enriched metadata

Scheme: investment-adviser-fraud (100%)
Victim loss: $1,800,000,000

Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →

Extracted insights

Dollar amounts 5

$1.80B $1.8 billion ≥$1B
$267.00M $267 Million $100M–$1B
$267.00M $267 million $100M–$1B
$125.00M $125 million $100M–$1B
$73.00M $73 million $10M–$100M

Entities 10

person Amy J. Greer
person Catherine E. Pappas
person Daniel M. Hawke
person Elaine C. Greenberg
organization Pbhg Funds
company pilgrim baxter & associates, ltd.
organization Pilgrim Baxter & Associates, Ltd.
company pilgrim baxter fair fund
agency Securities and Exchange Commission
location Washington, D.C.

Triples 6

SEC announced distribution of $73 million to investors harmed by fraudulent market timing in PBHG Funds
Pilgrim Baxter & Associates, Ltd. was investment adviser to PBHG Funds between June 1998 and December 2001
Pilgrim Baxter Fair Fund will provide $267 million to more than 384,000 account holders
SEC distributed first disbursement of $125 million on April 23, 2007
SEC anticipates third disbursement before September 30, 2007
SEC has distributed more than $1.8 billion in Fair Funds to investors

View original SEC press releasesec.gov

Extracted body text (1,974c)

SEC Announces Second of Three Disbursements From $267 Million Pilgrim Baxter Fair Fund FOR IMMEDIATE RELEASE 2007-113 Washington, D.C., June 13, 2007 - The Securities and Exchange Commission today announced the distribution of $73 million to a second group of investors harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001. Pilgrim Baxter & Associates, Ltd. was the investment adviser to the PBHG Funds during this period. Today's distribution is the second in a series of three disbursements from a Fair Fund that ultimately will provide $267 million to more than 384,000 account holders in the affected PBHG Funds. The first disbursement of $125 million occurred on April 23, 2007. The Commission anticipates that the third disbursement will be made before Sept. 30, 2007, to the remaining eligible account holders. To date, the SEC has distributed more than $1.8 billion in Fair Funds to investors. Investors can obtain additional information about the distribution process, including a copy of the Distribution Plan, by visiting http://www.pbafairfundsettlements.com or by calling the Administrator of the Distribution Plan at (800) 920-5408. # # # For further information contact: Daniel M. Hawke, Regional Director Elaine C. Greenberg, Associate Regional Director Amy J. Greer, Regional Trial Counsel Catherine E. Pappas, Senior Trial Counsel SEC Philadelphia Regional Office (215) 597-3100 Distribution Plan: http://www.sec.gov/litigation/admin/2006/34-54812-dp.pdf Order Approving the Distribution Plan: http://www.sec.gov/litigation/admin/2006/34-54812.pdf Related Orders Instituting Proceedings: http://www.sec.gov/litigation/admin/33-8506.htm http://www.sec.gov/litigation/admin/33-8505.htm http://www.sec.gov/litigation/admin/ia-2251.htm Additional Documents and Background: http://www.sec.gov/divisions/enforce/claims/pilgrimbaxter.htm http://www.sec.gov/news/press/2007/2007-113.htm Home | Previous Page Modified: 06/13/2007

OCR text (1,974c · plain-text · 99% conf)