Strong Capital Management, et al.

On May 20, 2004, the SEC instituted and settled administrative and cease-and-desist proceedings against Strong Capital Management, Inc., Richard Strong, and other entities and individuals. Among other things, the SEC alleged that Strong, entities he controlled, or others improperly: allowed and failed to disclose market timing in the Strong Fund complex; released confidential portfolio holdings; made misleading prospectus disclosures; and in Strong’s case, market-timed his own funds. As part of the settlement, the respondents were ordered to pay a total of more than $140 million in disgorgement of ill-gotten gains and civil penalties for distribution to defrauded shareholders. 

For more information on the SEC's action, you can read In the Matter of Strong Capital Management, Inc., Strong Investor Services, Inc., Strong Investments, Inc., Richard S. Strong, Thomas A. Hooker, Jr. and Anthony J. D'Amato at IA-2239 (May 20, 2004).

Under the terms of the SEC's order, the independent distribution consultant (IDC) retained by Strong Capital Management (SCM) must submit a Distribution Plan to the SEC to distribute the Fair Fund containing $140,750,000 million, plus accumulated interest, to injured investors. The Distribution Plan must be approved by the SEC before distributions to injured investors can occur. Before SEC approval, however, notice of the proposed Distribution Plan must be published for at least 30 days, specifying how copies of the proposed Distribution Plan may be obtained, and describing the process by which persons may comment on the Plan. A link to that Notice will be provided on this website and the Notice shall be published in the SEC Docket.

The IDC is completing the Distribution Plan for the SCM matter for SEC review. After publication and comment, the proposed Distribution Plan will be submitted to the SEC for approval. When the SEC approves the proposed Distribution Plan, with modifications as appropriate, distributions will begin.

http://www.sec.gov/divisions/enforce/claims/strongcapital.htm