Press Release: SEC Announces $125 Million Fair Fund Distribution to Investors Injured by Pilgrim Baxter Market Timing Fraud (Press Release No. 2007-168; April 23, 2007)
summary
The SEC distributed $125 million to 254,000+ investors harmed by Pilgrim Baxter & Associates' market timing fraud in PBHG Funds between 1998-2001.
paragraph
Pilgrim Baxter & Associates (PBA) and its principals, Gary Pilgrim and Harold Baxter, were charged by the SEC with fraudulent market timing in the PBHG Funds between June 1998 and December 2001. The total penalty and disgorgement amounted to $267 million, with PBA paying $40 million in disgorgement and $50 million in penalties, and Pilgrim and Baxter each paying $60 million in disgorgement and $20 million in penalties. The SEC established a Fair Fund under the Sarbanes-Oxley Act to distribute these funds to over 384,000 injured investors.
narrative
The SEC announced a $125 million Fair Fund distribution to over 254,000 investors harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001, carried out by Pilgrim Baxter & Associates (PBA) and its principals, Gary Pilgrim and Harold Baxter. The distribution was part of a total $267 million restitution, combining disgorgement and penalties paid by PBA, Pilgrim, and Baxter. PBA paid $40 million in disgorgement and $50 million in penalties, while Pilgrim and Baxter each paid $60 million in disgorgement and $20 million in penalties. The SEC charged all parties with antifraud violations, and they settled without admitting or denying the allegations. The Fair Fund was established under the Sarbanes-Oxley Act, allowing for the inclusion of financial penalties in distributions to harmed investors. This was the first of three planned distributions, with the remaining funds to be distributed before September 30, 2007, bringing relief to approximately 384,000 affected investors. The SEC has distributed over $1 billion in Fair Fund monies to date.
Classified market-manipulation(confidence 100%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →
Parties
fair fundfraudulent market timinggary l. pilgrimharold j. baxterpilgrim baxter & associates, ltd.sec to increase amount of money returned to harmed investorsSecurities and Exchange Commission
Keywords
fair fundsecdistributioncommissionpilgrim baxterfairfundmillioninvestorsmarket timingpbhg fundslitigation adminpilgrimbaxtermillion fair
Exhibits & Attached Documents (2)
Extracted insights
Dollar amounts 8
- $1.00B $1 billion ≥$1B
- $267.00M $267 million $100M–$1B
- $125.00M $125 Million $100M–$1B
- $125.00M $125 million $100M–$1B
- $60.00M $60 million $10M–$100M
- $50.00M $50 million $10M–$100M
- $40.00M $40 million $10M–$100M
- $20.00M $20 million $10M–$100M
Entities 7
- company fair fund
- person fraudulent market timing
- person gary l. pilgrim
- person harold j. baxter
- company pilgrim baxter & associates, ltd.
- agency sec to increase amount of money returned to harmed investors
- agency Securities and Exchange Commission
Triples 13
- SEC announced $125 Million Fair Fund Distribution to Investors Injured by Pilgrim Baxter Market Timing Fraud
- SEC distributed $125 Million to More Than 254,000 Investors
- Fraudulent Market Timing occurred in PBHG Funds Between June 1998 and December 2001
- Fair Fund will distribute Approximately $267 Million to More Than 384,000 Affected PBHG Funds Account Holders
- Pilgrim Baxter & Associates, Ltd. charged with Unlawful Market Timing in PBHG Funds
- Gary L. Pilgrim charged with Unlawful Market Timing in PBHG Funds
- Harold J. Baxter charged with Unlawful Market Timing in PBHG Funds
- SEC ordered PBA to Pay $40 Million in Disgorgement and $50 Million in Penalties
- Gary L. Pilgrim ordered to pay $60 Million in Disgorgement and $20 Million in Penalties
- Harold J. Baxter ordered to pay $60 Million in Disgorgement and $20 Million in Penalties
- SEC distributed More Than $1 Billion in Fair Fund Monies to Date
- Sarbanes-Oxley Act of 2002 enabled SEC to Increase Amount of Money Returned to Harmed Investors
- SEC anticipates Second and Third Fair Fund Distributions Before September 30, 2007
PDF (from attached: pdf)
Text layers
Extracted body text (3,487c)
SEC Announces $125 Million Fair Fund Distribution to Investors Injured by Pilgrim Baxter Market Timing Fraud FOR IMMEDIATE RELEASE 2007-68 Washington, D.C., April 23, 2007 — The Securities and Exchange Commission today announced a $125 million Fair Fund distribution to more than 254,000 investors who were harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001. Today’s distribution is the first in a series of three disbursements from the Fair Fund that will distribute a total of approximately $267 million to more than 384,000 affected PBHG Funds’ account holders. The Fair Fund resulted from Commission enforcement actions charging unlawful market timing in the PBHG Funds by Pilgrim Baxter & Associates, Ltd. (PBA), Gary L. Pilgrim, and Harold J. Baxter. “Of the Commission’s many responsibilities under the federal securities laws, one of the most important and indeed most gratifying is providing tangible relief to injured investors,” said Linda Chatman Thomsen, Director of the Division of Enforcement. “Today’s distribution is a significant milestone in remedying harm that investors in the PBHG Funds suffered.” The Fair Fund provision of the Sarbanes-Oxley Act of 2002 enabled the SEC to increase the amount of money returned to harmed investors by allowing financial penalties paid by wrongdoers to be included in the distributions. Prior to the enactment of Sarbanes-Oxley, only disgorgement could be returned to affected investors. To date, the SEC has distributed more than $1 billion in Fair Fund monies. In 2004, the Commission brought and settled public administrative and cease-and-desist proceedings against PBA, which consented to a Commission Order charging antifraud violations without admitting or denying the Commission’s findings. The Commission ordered PBA to pay $40 million in disgorgement and $50 million in penalties. The Commission later settled administrative and cease-and-desist proceedings against PBA’s two former principals, Pilgrim and Baxter, who also consented to Commission Orders charging antifraud violations without admitting or denying the Commission’s findings. The Commission ordered them to each pay $60 million in disgorgement and $20 million in penalties for distribution through the Fair Fund. The Commission anticipates that the second and third distributions from the Fair Fund to PBHG Funds’ accountholders will occur before Sept. 30, 2007. 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 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 Orders Instituting Proceedings against PBA, Pilgrim and Baxter: 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/2007/2007-68.htm Home | Previous Page Modified: 04/23/2007
OCR text (3,487c · plain-text · 99% conf)
SEC Announces $125 Million Fair Fund Distribution to Investors Injured by Pilgrim Baxter Market Timing Fraud FOR IMMEDIATE RELEASE 2007-68 Washington, D.C., April 23, 2007 — The Securities and Exchange Commission today announced a $125 million Fair Fund distribution to more than 254,000 investors who were harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001. Today’s distribution is the first in a series of three disbursements from the Fair Fund that will distribute a total of approximately $267 million to more than 384,000 affected PBHG Funds’ account holders. The Fair Fund resulted from Commission enforcement actions charging unlawful market timing in the PBHG Funds by Pilgrim Baxter & Associates, Ltd. (PBA), Gary L. Pilgrim, and Harold J. Baxter. “Of the Commission’s many responsibilities under the federal securities laws, one of the most important and indeed most gratifying is providing tangible relief to injured investors,” said Linda Chatman Thomsen, Director of the Division of Enforcement. “Today’s distribution is a significant milestone in remedying harm that investors in the PBHG Funds suffered.” The Fair Fund provision of the Sarbanes-Oxley Act of 2002 enabled the SEC to increase the amount of money returned to harmed investors by allowing financial penalties paid by wrongdoers to be included in the distributions. Prior to the enactment of Sarbanes-Oxley, only disgorgement could be returned to affected investors. To date, the SEC has distributed more than $1 billion in Fair Fund monies. In 2004, the Commission brought and settled public administrative and cease-and-desist proceedings against PBA, which consented to a Commission Order charging antifraud violations without admitting or denying the Commission’s findings. The Commission ordered PBA to pay $40 million in disgorgement and $50 million in penalties. The Commission later settled administrative and cease-and-desist proceedings against PBA’s two former principals, Pilgrim and Baxter, who also consented to Commission Orders charging antifraud violations without admitting or denying the Commission’s findings. The Commission ordered them to each pay $60 million in disgorgement and $20 million in penalties for distribution through the Fair Fund. The Commission anticipates that the second and third distributions from the Fair Fund to PBHG Funds’ accountholders will occur before Sept. 30, 2007. 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 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 Orders Instituting Proceedings against PBA, Pilgrim and Baxter: 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/2007/2007-68.htm Home | Previous Page Modified: 04/23/2007