The Securities and Exchange Commission announced that Fred Alger Management and Fred Alger & Co. will pay $40 million to settle charges that the firms allow both market timing and late trading in the Alger Fund. The SEC found that the companies failed to disclose the violations to the board of directors of the fund.
Without admitting or denying the charges, the companies agreed to pay a $30 million disgorgement and a $10 million penalty. The entire $40 million will compensate investors. The company also agreed to retain an independent consultant to oversee its compliance policies and procedures.