More than $78 million is being distributed to over 590,000 investors who were affected by undisclosed market timing in certain AIM mutual funds.
The Securities and Exchange Commission announced yesterday that the money is being distributed from funds that were created to benefit AIM investors affected by illegal market timing involving AIM Advisors and its distributors, Banc of America Capital Management and Bear, Stearns & Co.
The distribution stems from a prior SEC enforcement action against AIM Advisors Inc., which advised the funds, and AIM Distributors Inc. (ADI), which distributed the funds. It includes $50 million in disgorgement and penalties collected in a Fair Fund from AIM Advisors and ADI after the SEC settled administrative and cease-and-desist proceedings against them in 2004. It also includes about $11 million in disgorgement, penalties and accumulated interest from Banc of America Capital Management LLC, BACAP Distributors LLC and Banc of America Securities LLC Fair Fund; and approximately $12.4 million in disgorgement, penalties and accumulated interest from Bear, Stearns & Co. Inc. and Bear, Stearns Securities Corp. Fair Fund.
The Sarbanes-Oxley Act (SOX) of 2002 gave the SEC authority to increase the amount of money returned to injured investors by allowing civil penalties to be included in Fair Fund distributions. Before SOX, only disgorgement could be returned to investors.
The Fair Fund administrator responsible for the distribution to AIM mutual fund investors is Boston Financial Data Services Inc. (BFDS). Investors with question about the distribution may contact BFDS at (866) 700-0226 or click here.