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Strong Capital Management, et al.
Latest Action: Under the terms of the SEC's order, the independent distribution consultant (IDC) retained by Strong Capital Management submitted a plan to the SEC to distribute the Fair Fund containing $140,750,000 million, plus accumulated interest, to injured investors. On July 30, 2009, the SEC published a Notice of Proposed Distribution Plan and Opportunity for Comment in connection with this matter. After investors have an opportunity to comment, the plan will be submitted to the Commission for approval to make distribution to shareholders.
Background: 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).
http://www.sec.gov/divisions/enforce/claims/strongcapital.htm
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