On June 13, 2013, without admitting or denying the allegations, eight former directors of five mutual funds agreed to settle SEC charges that they failed to satisfy their fair valuation responsibilities under federal securities laws. The SEC did not require the directors to pay a fine or monetary penalties, but required them to “cease and desist” from future violations.
The funds at issue were heavily invested in securities backed by subprime mortgages. As a result of the alleged violations, the SEC said that the funds overstated the value of their securities as the housing market was on the brink of a financial crisis in 2007. The funds’ investment adviser and others previously agreed to pay $200 million to settle charges on related conduct.
Please see full alert below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.