On January 15, 2004, the SEC instituted settled administrative and cease-and-desist proceedings against Alliance Capital Management, L.P. According to the SEC: "This proceeding concerns Alliance Capital's negotiated, but undisclosed, arrangements with market timers arrangements that benefited Alliance Capital to the detriment of investors in mutual funds managed by Alliance Capital. In those arrangements, Alliance Capital provided 'timing capacity' in mutual funds to known timers in return for or in connection with the timers' investments of 'sticky assets' in Alliance Capital managed hedge funds, mutual funds and other investment vehicles, from which Alliance Capital earned management fees. Alliance Capital's single biggest timer received at its height $220 million in timing capacity in Alliance Capital mutual funds in return for investments at agreed ratios in hedge funds managed by some of the same portfolio managers. The prospectuses for these mutual funds gave the misleading impression that Alliance Capital sought to prevent timing in these mutual funds. Alliance Capital failed to disclose that, in fact, it negotiated agreements to permit timing in return for the sticky assets. At their height in 2003, Alliance Capital had over $600 million in approved timing in its mutual funds. Alliance Capital permitted these arrangements despite awareness of the harmful effects timing can have on mutual funds and the ability to detect and prevent inappropriate timing in mutual funds. By entering into these arrangements, Alliance Capital breached its fiduciary duty to the mutual funds in which it arranged the timing."

The Commission stated that the penalties be paid to "mutual fund investors affected by certain market timing trading activity."

The Commission stated: "Alliance Capital provided 'timing capacity' in mutual funds to known timers in return for or in connection with timers' investments of 'sticky assets' in Alliance Capital Managed hedge funds, mutual funds and other investment vehicles, from which Alliance Capital earned management fees."

The Commission ordered that: "A. . . . the Distribution Plan, as modified, is approved; B. . . . Rust Consulting, Inc., is appointed as the Fund Administrator; and C. The bond requirement of Rule 1105(c) of the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1105(c), is waived for good cause shown."

The Commission stated that: "This Plan of Distribution (the "Plan") has been developed by an Independent Distribution Consultant ("IDC") pursuant to the Amended Order of the Securities and Exchange Commission Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order against Alliance Capital Management, L.P. ("Alliance Capital"), dated January 15, 2004 (the "Order"). Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, the Plan provides for the creation of a $250 million Fair Fund (the "Fair Fund"), consisting of $150 million in disgorgement and $100 million in penalty (Order at Section IV, Part K), paid by Alliance Capital in settlement of claims by the Securities and Exchange Commission (the "SEC" or "Commission") relating to market timing in certain Alliance Capital mutual funds (the "Alliance Settlement"). The Fair Fund's assets will be distributed only pursuant to the terms of this Plan."

The Commission stated: "[I]t is ORDERED that the Commission staff shall transfer $46,166,264.96 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

The SEC stated that: "[I]t has completed the first in a series of disbursements from a Fair Fund that will return approximately $321 million to more than two million investors who were harmed by undisclosed market timing in the Alliance mutual funds complex."

The Commission stated: "[I]t is ORDERED that the Commission staff shall transfer $79,178,672.81 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

The Commission stated: "the Commission staff shall transfer $63,141,852.24 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

The Commission stated: "the Commission staff shall transfer $49,910,496.49 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

The Commission stated: " it is ORDERED that the Commission staff shall transfer $56,642,634.13 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

The SEC stated: "[I]t is ORDERED that the Commission staff shall transfer $46,942,173.23 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

On May 31, 2011, the Commission provided for the transfer of Fair Funds to the Fund Administrator and injured investors.

On January 9, 2014, the SEC published an order amending the plan of distribution.

On February 20, 2014, the SEC published an Order Directing Disbursement of Fair Fund. The SEC ordered that: "the Fund Administrator shall distribute $33,061,872.31 to injured investors, as provided for in the Plan."

On April 16, 2015, the SEC amended the offer of settlement originally instituted on January 15, 2004 against Alliance Capital Management, L.P. The new offer relieves Alliance Capital of its undertakings to hold shareholder meetings every five years to elect directors of the boards of its mutual funds and to designate an independent compliance officer to advise the boards of the mutual funds about Alliance Capital's compliance with federal securities laws.

On June 10, 2016, the Commission ordered that "the Commission staff shall transfer $3,350,461.97 from the Fair Fund's assets at Treasury to the Fair Fund's account at Deutsche Bank and the Fund Administrator shall distribute $48,294,481.40 to the Alliance Funds, as provided for in the Plan." According to the SEC: "Section 3.7.5 of the Plan provides that any residual amount in the Final Settlement Account after all Fair Fund assets have been distributed will be remitted to the Alliance Funds, based on the proportion of Adjusted Losses incurred in each Alliance Fund."

According to the SEC: "The remaining funds in the Fair Fund in the amount of $48,486.02 and any future funds received by the Fair Fund shall be transferred to the U.S. Treasury; the Fund Administrator is discharged; and the Fair Fund is terminated."

On June 30, 2017, the SEC announced a Name Change of Appointed Tax Administrator, and amended the Omnibus Order, beginning June 2017 and for calendar year 2018, to replace all references to Damasco with "Miller Kaplan Arase LLP which acquired Damasco & Associates LLP" in order to reflect Damasco's name change.