Defendant Name:
Federated Securities Corp.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Federated Investors Inc.
SIC Code:
6282
CUSIP:
31421110
Initial Case Details
Legal Case Name
In the Matter of Federated Investment Management Company, Federated Securities Corp. and Federated Shareholder Services Company
First Document Date
28-Nov-2005
Initial Filing Format
Administrative Action
File Number
3-12111
Allegation Type
Investment Advisers/Investment Companies
Violations Alleged
•
Sections 206(1), 206(2) Investment Advisers Act; Section 17(d) Investment Company Act; Rule 17d-1 Investment Company Act
Resolutions
First Resolution Date
28-Nov-2005
Headline Total Penalty and Disgorgement
See Related Documents
Related Documents:
34-52839
28-Nov-2005
Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Making Finds, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 15(b)(4) and 17A(c)(3) of the Securities Exchange Act of 1934, Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940
On November 28, 2005, the SEC instituted administrative and cease-and-desist proceedings against Federated Investment Management Company, Federated Securities Corp. and Federated Shareholder Services Company. According to the SEC: "This is a proceeding against three registered subsidiaries of Federated Investors, Inc., one of the largest mutual fund managers in the United States, involving undisclosed market timing arrangements and late trading."
34-61118
04-Dec-2009
Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
On December 9, 2009, the SEC gave Notice that the Division of Enforcement filed a proposed plan for the distribution of the Fair Fund. According to the SEC: "The Distribution Plan provides for distribution of the Fair Fund to eligible investors in the Federated Funds identified in the plan to compensate them for losses resulting from market timing and late trading."
Proposed Plan of Distribution
According to the SEC, the Proposed Plan of Distribution is to, "'provide for investors in the funds to receive, from the monies available for distribution, in order of priority (i) their proportionate share of losses suffered by the fund due to market timing and late trading, and (ii) a proportionate share of advisory fees paid by funds that suffered such losses during the period of such market timing.' It is not intended to compensate investors for losses incurred because of fluctuations in securities markets."
34-61437
28-Jan-2010
Administrative Proceeding
Order Approving Plan, Appointing an Administrator, and Waiving Bond
On January 28, 2010, the SEC ordered the approval of the Distribution Plan for the Fair Fund. According to the SEC: "The Distribution Plan provides for distribution of the Fair Fund to eligible investors in the Federated Funds identified in the Distribution Plan to compensate them for losses resulting from market timing and late trading." The SEC also ordered the appointment of Boston Financial Data Services as the Plan Administrator and waived the bond requirement for good cause shown.
Distribution Plan
According to the SEC: "This Distribution Plan is to 'provide for investors in the funds to receive, from the monies available for distribution, in order of priority (i) their proportionate share of losses suffered by the fund due to market timing and late trading, and (ii) a proportionate share of advisory fees paid by funds that suffered such losses during the period of such market timing.' It is not intended to compensate investors for losses incurred because of fluctuations in securities markets." The Plan provided that Boston Financial Data Services is to serve as Fund Administrator. The Respondents retained Kenneth Lehn as the Independent Distribution Consultant for the matter.
34-62542
21-Jul-2010
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On July 21, 2010, the SEC ordered that, "the Commission staff shall transfer $63,212,121.41 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan."
34-62836
02-Sep-2010
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On September 2, 2010, the SEC ordered that, "the Commission staff shall transfer $13,941,123.91 of the Fair Fund to Deutsche Bank and the Fund Administrator shall distribute such monies to investors, as provided for in the Plan."
34-67187
12-Jun-2012
Administrative Proceeding
Order Modifying Distribution Plan and Directing Disbursement
On June 12, 2012, the SEC ordered the modification of the plan of distribution for the Fair Fund. The SEC also ordered the distribution of the First Residual, after the distribution to injured investors, to the affected Federated funds in the validated payment file of $14,575,932.22. According to the SEC: "the Plan provides that any Residual shall be distributed to the Federated Funds, based on the proportionate excess profits by market timers accounted for by each Federated Fund."
34-70367
10-Sep-2013
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On September 10, 2013, the SEC ordered that the Fund Administrator disburse the Second Residual (after distribution of funds from the Fair Fund to injured investors) to the affected Federated Funds in the amount stated in the validated payment file of $1,430,034.52 as provided for in the Modified Distribution Plan. According to the SEC: "The Modified Distribution Plan provides that the Commission shall arrange for distribution of the Second Residual Distribution when a validated payment file has been received by Commission staff and the distribution information has been also received by the affected Federated Funds."
34-75741
19-Aug-2015
Administrative Proceeding
Order Authorizing Transfer of Remaining Funds and Any Future Funds Received by the Fair Fund to the U.S. Treasury, Discharging the Fund Administrator, and Terminating the Fair Fund
On August 19, 2015, the SEC ordered that the remaining funds in the Fair Fund, "in the amount of $143,981.73 and any future funds received by the Fair Fund shall be transferred to the U.S. Treasury." The SEC also discharged the fund administrator and terminated the Fair Fund.
Other Defendants in Action:
