On March 16, 2006 the SEC issued a settled administrative proceeding against Bear, Stearns Securities Corp. According to the SEC: "This case involves two types of illegal mutual fund trading practices: Late trading and deceptive market timing. The Respondents are BS&Co., an introducing broker-dealer whose customers buy and sell securities, and BSSC, a clearing firm that clears trades for BS&Co., other introducing brokers and prime brokerage customers. Between 1999 and 2003, Respondents facilitated a substantial amount of late trading and deceptive market timing."

The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan for the distribution of the Fair Fund in this matter."

The Commission stated: "This Plan of Distribution ("Plan" or "Distribution Plan") proposes a methodology for distributing to investors $250 million (plus accumulated interest net of tax liabilities) paid by Bear, Stems & Co., Inc. ("BS&Co.") and Bear, Stearns Securities Corp. ("BSSC") (collectively, "Respondents") in settlement of administrative proceedings concerning findings of late trading and deceptive market timing practices in the trading of mutual funds."

The Commission stated: "IT IS ORDERED that . . . the Distribution Plan is approved; . . . Rust Consulting, Inc., is appointed as the Fund Administrator; and The bond requirement . . . is waived for good cause shown."

The Commission stated: "This Plan of Distribution ("Plan" or "Distribution Plan") proposes a methodology for distributing to investors $250 million (plus accumulated interest net of tax liabilities) paid by Bear, Stems & Co., Inc. ("BS&Co.") and Bear, Stearns Securities Corp. ("BSSC") (collectively, "Respondents") in settlement of administrative proceedings concerning findings of late trading and deceptive market timing practices in the trading of mutual funds."

The Commission stated: "This Plan of Distribution ("Plan" or "Distribution Plan") proposes a methodology for distributing to investors $250 million (plus accumulated interest net of tax liabilities) paid by Bear, Stems & Co., Inc. ("BS&Co.") and Bear, Stearns Securities Corp. ("BSSC") (collectively, "Respondents") in settlement of administrative proceedings concerning findings of late trading and deceptive market timing practices in the trading of mutual funds."

The Commission stated: "[T]he Commission staff shall transfer $216,819,719.80 of the Fair Fund to the Escrow Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."

The SEC "announced the start of a $267 million Fair Fund distribution to mutual funds and mutual fund shareholders who were harmed by late trading and market timing that occurred through Bear Stearns, which was charged by the SEC in a 2006 enforcement action."

The Commission stated: "it is ORDERED that the Commission staff shall transfer $13,219,172.76 of the Fair Fund to the escrow account established in connection with the New York Attorney General Office's Deutsche Investment Management Americas, Inc. distribution fund in order to distribute such monies to mutual fund shareholders, as provided for in the Plan."

The Commission stated: "it is ORDERED that the Commission staff shall transfer $14,711,842.46 of the Fair Fund to the escrow bank and the Fund Administrator shall distribute such monies as provided for in the Plan of Distribution."

The Commission stated: "it is ORDERED that: A. The remaining Fair Fund balance of $13,173,574.58, and any funds returned to the Fair Fund in the future, shall be transferred to the U.S. Treasury; B. The Fund Administrator, Rust Consulting, Inc. is discharged; and C. 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.