The Securities and Exchange Commission paid the first of three installments of a total of $267 million from a fair fund to PBHG investors who were harmed by market-timing and late-trading activity in the funds, The Philadelphia Inquirer reports. So, far, $125 million has been sent to 254,000 investors. A total of 384,000 will eventually be paid, with Sept. 30 being the last installment.

The SEC said that the violations of the funds’ prospectuses took place between June 1998 and December 2001, earning the traders $238 million in profits.

The firm paid $90 million in penalties and disgorgement, while its founders, Harold Baxter and Gary Pilgrim, paid $80 million. The $170 million grew to $267 million with accrued interest.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.