Press Release: SEC Announces $67 Million Fair Fund Distribution to Harmed Investors in McAfee Financial Fraud Settlement; 2010-22; Feb. 22, 2010
The SEC distributed $67 million to over 16,000 investors harmed by McAfee, Inc.'s 2000–2003 accounting fraud, in which it overstated revenues and earnings, with funds drawn from McAfee’s $50 million settlement and an additional $16 million from related settlements with Ingram Micro, Eric G. Borrmann, and Terry W. Davis.
The SEC distributed approximately $67 million to more than 16,000 investors through a Fair Fund created from McAfee, Inc.’s 2006 settlement of $50 million in penalties and disgorgement for overstating revenues and earnings between 2000 and 2003. The fund was augmented by over $16 million from three additional SEC enforcement actions against Ingram Micro, Eric G. Borrmann, and Terry W. Davis, all tied to the same fraud scheme. The distribution, administered by Jeffrey Plotkin, was enabled by the Sarbanes-Oxley Act’s Fair Fund provisions, emphasizing the SEC’s commitment to investor restitution without mention of criminal charges.
The SEC distributed approximately $67 million to more than 16,000 investors harmed by McAfee, Inc.’s financial fraud, which involved the deliberate overstating of revenues and earnings between 2000 and 2003. The primary source of the Fair Fund was McAfee’s 2006 settlement of $50 million in penalties and disgorgement to resolve SEC charges, with an additional $16 million contributed from three related enforcement actions against Ingram Micro, Eric G. Borrmann, and Terry W. Davis. These supplemental settlements were directly tied to the same accounting misconduct that misled investors and distorted financial statements. The SEC utilized its authority under the Sarbanes-Oxley Act of 2002 to create the Fair Fund, ensuring that ill-gotten gains were returned to injured parties rather than going to the U.S. Treasury. Jeffrey Plotkin served as the Distribution Agent, overseeing the allocation process and providing a dedicated hotline and website for investor inquiries. The action marked one of the largest investor restitution efforts under the Fair Fund program at the time, underscoring the SEC’s focus on accountability and recovery for retail investors. No criminal charges were referenced in the announcement, and the resolution was purely civil in nature.
Exhibits & Attached Documents (3)
Extracted insights
- $67.00M $67 Million $10M–$100M
- $67.00M $67 million $10M–$100M
- $50.00M $50 million $10M–$100M
- $16.00M $16 million $10M–$100M
- person antonia chion
- person Eric G. Borrmann
- company fair fund
- person ingram micro
- person Jeffrey Plotkin
- company McAfee, Inc.
- agency sec division of enforcement
- agency Securities and Exchange Commission
- person terry w. davis
- SEC announced distribution of $67 Million to Harmed Investors in McAfee Financial Fraud Settlement
- McAfee, Inc. agreed to pay Approximately $50 Million in Penalties and Disgorgement
- McAfee, Inc. defrauded investors by Overstating Revenues and Earnings
- SEC settled charges against McAfee, Inc. in 2006
- Ingram Micro added to Fair Fund More Than $16 Million
- Eric G. Borrmann added to Fair Fund More Than $16 Million
- Terry W. Davis added to Fair Fund More Than $16 Million
- Fair Fund distributed to More Than 16,000 Investors
- Jeffrey Plotkin is Distribution Agent for McAfee Fair Fund Distribution
- Antonia Chion is Associate Director of SEC Division of Enforcement
SEC Announces $67 Million Fair Fund Distribution to Harmed Investors in McAfee Financial Fraud Settlement FOR IMMEDIATE RELEASE 2010-22 Washington, D.C., Feb. 22, 2010 — The Securities and Exchange Commission today announced the distribution of approximately $67 million to more than 16,000 investors in connection with McAfee, Inc. financial fraud settlements. The Fair Fund was created after McAfee (formerly Network Associates, Inc.), agreed to pay approximately $50 million in penalties and disgorgement to settle SEC charges in 2006 that it defrauded investors by overstating its revenues and earnings. Subsequently, the proceeds from three other settled SEC enforcement actions related to the McAfee financial fraud were added to the Fair Fund: Ingram Micro; Eric G. Borrmann; and Terry W. Davis. Settlements in these actions added more than $16 million to the Fair Fund. "The McAfee Fair Fund distribution demonstrates the Commission's continuing commitment to using the Fair Fund provisions of the Sarbanes-Oxley Act of 2002 to return money to investors injured by securities law violators," said Antonia Chion, Associate Director of the SEC's Division of Enforcement. The Distribution Agent responsible for the McAfee distribution is Jeffrey Plotkin. Investor questions regarding the distribution may be directed to Mr. Plotkin at 1-800-893-4359. Information regarding the distribution also can be obtained at http://www.McAfeeSECsettlement.com. # # # For more information about these enforcement actions, contact: Antonia Chion Associate Director, SEC Division of Enforcement (202) 551-4842 Yuri B. Zelinsky Assistant Director, SEC Division of Enforcement (202) 551-4769 Additional materials: Distribution Plan Order Approving the Distribution Plan # # # http://www.sec.gov/news/press/2010/2010-22.htm Home | Previous Page Modified: 02/22/2010
SEC Announces $67 Million Fair Fund Distribution to Harmed Investors in McAfee Financial Fraud Settlement FOR IMMEDIATE RELEASE 2010-22 Washington, D.C., Feb. 22, 2010 — The Securities and Exchange Commission today announced the distribution of approximately $67 million to more than 16,000 investors in connection with McAfee, Inc. financial fraud settlements. The Fair Fund was created after McAfee (formerly Network Associates, Inc.), agreed to pay approximately $50 million in penalties and disgorgement to settle SEC charges in 2006 that it defrauded investors by overstating its revenues and earnings. Subsequently, the proceeds from three other settled SEC enforcement actions related to the McAfee financial fraud were added to the Fair Fund: Ingram Micro; Eric G. Borrmann; and Terry W. Davis. Settlements in these actions added more than $16 million to the Fair Fund. "The McAfee Fair Fund distribution demonstrates the Commission's continuing commitment to using the Fair Fund provisions of the Sarbanes-Oxley Act of 2002 to return money to investors injured by securities law violators," said Antonia Chion, Associate Director of the SEC's Division of Enforcement. The Distribution Agent responsible for the McAfee distribution is Jeffrey Plotkin. Investor questions regarding the distribution may be directed to Mr. Plotkin at 1-800-893-4359. Information regarding the distribution also can be obtained at http://www.McAfeeSECsettlement.com. # # # For more information about these enforcement actions, contact: Antonia Chion Associate Director, SEC Division of Enforcement (202) 551-4842 Yuri B. Zelinsky Assistant Director, SEC Division of Enforcement (202) 551-4769 Additional materials: Distribution Plan Order Approving the Distribution Plan # # # http://www.sec.gov/news/press/2010/2010-22.htm Home | Previous Page Modified: 02/22/2010