The
Further, the SEC said, the investment advisor significantly understated the volume of redemption requests and failed to provide the trustees with accurate information concerning the value of Lehman securities.
In bringing the charges, the SEC is working to expedite a pro rata distribution of the funds remaining assets to investors.
Were taking the lead in this matter because we want to get money back into the pockets of the investors as quickly as possible, said SEC Chairman Mary L. Schapiro. Through this action, we hope to avoid inconsistent rulings regarding a finite pool of money and assure a fair result.
The SEC is charging
The funds managers turned a blind eye to investors and the reality of the situation at hand before the fund broke the buck on Sept. 15, Schapiro said.
Fund managers have serious obligations to keep their trustees and investors informed in both good times and bad, and cannot choose to reveal only favorable facts, added James A. Clarkson, acting director of the SECs New York regional office.
The complaint, filed in the U.S. District Court for the Southern District of New York, seeks a final judgment that will order defendants to pay financial penalties and disgorgement of ill-gotten gains, plus interest.