The Securities and Exchange Commission has distributed $55.6 million to 200,000 Banc One investors whose holdings were depleted by market timing. The fair fund resulted from a 2004 settlement in which Banc One Investment Advisors agreed to pay $10 million in disgorgement and $40 million in civil penalties.
“Returning money to investors injured by the unlawful market timing in this and other matters marks the continuation of the SEC’s efforts to remedy the harm suffered by investors,” said Linda Chatman Thomsen, director of the SEC’s division of enforcement.
On June 29, 2004, the SEC brought settled administrative and cease-and-desist proceedings against BOIA and Mark A. Beeson, former president and CEO of One Group Funds. Both consented to the settled order without admitting or denying the SEC’s findings. The SEC found that BOIA improperly allowed market timing in One Group Funds between June 1999 and May 2003, failed to charge required redemption fees in One Group Funds’ international funds, and improperly released confidential portfolio holdings.