Defendant Name:
Evergreen Investment Services, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Wells Fargo & Co.
SIC Code:
6021
CUSIP:
94974610
Initial Case Details
Legal Case Name
In the Matter of Evergreen Investment Management Company, LLC and Evergreen Investment Services, Inc.
First Document Date
08-Jun-2009
Initial Filing Format
Administrative Action
File Number
3-13507
Allegation Type
Investment Advisers/Investment Companies
Violations Alleged
•
Section 15(f), 17(a) Exchange Act; Rule 17a-4(b)(4) Exchange Act; Section 206(c)(2) Investment Advisers Act; Rule 22c-1(a) Investment Company Act
Related Violations Alleged
Resolutions
First Resolution Date
08-Jun-2009
Headline Total Penalty and Disgorgement
$7,125,001
Related Documents:
34-60059
08-Jun-2009
Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b)(4) and 21C 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, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On June 8, 2009, the SEC instituted settled administrative and cease-and-desist proceedings against Evergreen Investment Management Company, LLC and Evergreen Investment Services, Inc (the 'Evergreen Distributor'). According to the SEC: "The Evergreen Ultra Short Opportunities Fund (the 'Ultra Fund' or the 'Fund') was a mutual fund that invested primarily in mortgage-backed securities. The Fund's investment adviser was Evergreen Investment Management Company, LLC (the 'Evergreen Adviser'). From February 2007 through its closing on June 18, 2008, the Ultra Fund overstated its per share net asset value ('NAV') by as much as 17%. The Fund's NAV was overstated because the Evergreen Adviser, through the Fund's portfolio management team, did not properly take into account various readily-available information when recommending valuations to the Evergreen Valuation Committee (whose responsibility it was to value such securities) for certain residential mortgage-backed securities held by the Fund." In addition, the SEC alleged that, "the Evergreen Distributor failed to preserve certain business-related electronic communications as required by federal securities laws and in violation of a Commission Order entered against it on September 19, 2007, in a separate enforcement action."
33-9038
08-Jun-2009
Administrative Proceeding
Order Under Rule 602(e) of the Securities Act of 1933 Granting a Waiver of the Rule 602(c)(3) Disqualification Provision
The Commission stated: "IT IS ORDERED . . . that a
waiver of the disqualification provision of Rule 602(c)(3) under the Securities Act resulting from
the entry of the Order is hereby granted."
33-9039
08-Jun-2009
Administrative Proceeding
Order Under Section 27A(b) of the Securities Act of 1933 and Section 21E(b) of the Securities Exchange Act of 1934, Granting Waivers of the Disqualification Provisions of Section 27A(b)(1)(A)(ii) of the Securities Act of 1933 and Section 21E(b)(1)(A)(ii) of the Securities Exchange Act of 1934
The Commission stated: "IT IS ORDERED . . . that a waiver from the disqualification provisions of Section
27A(b)(1)(A)(ii) of the Securities Act and Section 21E(b)(1)(A)(ii) of the Exchange Act as to
EIMCO and EIS and their affiliates resulting from the entry of the Order is hereby granted."
2009-130
08-Jun-2009
Press Release--Administrative Proceeding
SEC Charges Evergreen for Overvaluing Holdings in Mortgage-Backed Securities and Making Selective Disclosures to Investors
The stated that: "[It] charged Boston-based Evergreen Investment
Management Company LLC and an affiliate with securities law violations for
overstating the value of a mutual fund that invested primarily in mortgage-backed securities, and then only selectively telling shareholders about the
fund’s valuation problems."
34-65179
22-Aug-2011
Administrative Proceeding
Order Approving Final Accounting, Directing Payment of Remainder of Fair Fund to United States Treasury, and Terminating the Fair Fund
On August 11, 2011 the SEC ordered that, "the $429,533.71 remaining in the Fair Fund shall be transferred to the United States Treasury." According to the SEC: "Due to factors beyond the Respondents' control (e.g., uncashed checks and checks that were returned as undeliverable), $429,533.71 remained in the Fair Fund after the distribution was complete."
Other Defendants in Action:
