The Securities and Exchange Commission has begun distributing $321 million to the two million Alliance Capital investors who were harmed by market timing. This first installment is a total of $46 million, distributed to 300,000 investors.

The original case charged Alliance with permitting rampant market timing between January 2001 and September 2003 in its mutual funds, contrary to those funds’ public disclosures. In 2004, Alliance paid $250 million in disgorgement and civil penalties. Then, in 2006 settled a civil injunctive action against Daniel Calugar and Securities Brokerage, for a total of $153 million. Of this, $70.38 million was set aside to repay Alliance mutual funds investors who Securities Brokerage harmed.

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