Defendant Name: Massachusetts Financial Services Company

Defendant Type: Subsidiary of Public Company
Public Company Parent: Sun Life Financial Inc.
SIC Code: 6411
CUSIP: 86679610

Initial Case Details

Legal Case Name In the Matter of Massachusetts Financial Services Company, John W. Ballen and Kevin R. Parke
First Document Date 05-Feb-2004
Initial Filing Format Administrative Action
File Number 3-11393
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
Section 206(1), 206(2) Investment Advisers Act; Section 34(b) Investment Company Act

Resolutions

First Resolution Date 05-Feb-2004

Related Documents:

IA-2213 05-Feb-2004 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e), 203(f) 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
According to the SEC: "MFS, Ballen, and Parke willfully violated antifraud provisions of the Investment Advisers Act and the Investment Company Act by allowing widespread market timing trading in certain MFS funds from at least late 1999 through October 2003 in contravention of the funds' prospectus disclosures."
34-56743 05-Nov-2007 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission ordered that: "In the matter of Massachusetts Financial Services Company, John W. Ballen and Kevin R. Parke."
2007-241 20-Nov-2007 Press Release--Administrative Proceeding
SEC Announces $31.5 Million Fair Fund Distribution to Investors Injured by Undisclosed Market Timing in MFS Funds
The SEC "distributed $31.5 million in Fair Funds to more than 150,000 investors who were harmed by undisclosed mutual fund market timing in the Massachusetts Financial Services Company (MFS) funds between 1999 and 2003. The distribution is the first in a series of disbursements from the Fair Fund that will return approximately $306 million to affected MFS account holders."
34-56922 06-Dec-2007 Administrative Proceeding
Order Directing Disbursement of Fair Fund
34-57117 09-Jan-2008 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission staff shall transfer $32,499,722.42 of the Fair Fund to Deutsche Bank and the Plan Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution.
34-57276 06-Feb-2008 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission stated: "it is ordered that the Commission staff shall transfer $25,838,712.81 of the Fair Fund to Deutsche Bank and the Plan Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."
34-57396 28-Feb-2008 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
The order read in part: "From approximately 2006 to 2015, MFS advertised that the basis of its blended research philosophy was that fundamental and quantitative management styles excel in differing market conditions, and that blending fundamental and quantitative stock ratings could over time yield better returns than either type of ratings alone. To illustrate the validity of its claim that blending two sources of ratings was better than one source alone, MFS advertised the results of a hypothetical portfolio of stocks rated "buy" by both MFS's fundamental analysts and quantitative models. In its advertisements, MFS showed how this hypothetical portfolio had annualized returns from 1995 forward that exceeded the annualized returns of either a hypothetical portfolio of fundamental "buy" rated stocks or a hypothetical portfolio of quantitative "buy" rated stocks. MFS's advertisements that demonstrated the superior returns of the hypothetical portfolio of stocks rated "buy" by both MFS's fundamental analysts and quantitative models were misleading because the materials failed to disclose that some of the quantitative ratings used to create the hypothetical portfolio were determined using a retroactive, back-tested, application of MFS's quantitative model."
34-57687 18-Apr-2008 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission stated: "it is ORDERED that the Commission staff shall transfer $43,501,260.12 of the Fair Fund to Deutsche Bank and the Plan Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."
34-59048 03-Dec-2008 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission stated: " it is ORDERED that the Commission staff shall transfer $4,344,562.98 of the Fair Fund to Deutsche Bank and the Plan Administrator shall distribute such monies to investors, as provided for in the Plan of Distribution."
34-59741 09-Apr-2009 Administrative Proceeding
Order Approving and Ratifying Prior Disbursement of Fair Fund
The Commission stated: "checks totaling $46,784.94 were issued by the Fund Administrator to 345 accounts of injured investors," and ordered that such check issuances approved and ratified.
34-63240 03-Nov-2010 Administrative Proceeding
Order Modifying Distribution Plan and Directing Disbursement
On November 3, 2010, the SEC ordered the approval of the Modified Plan of Distribution. The SEC ordered that "the Commission staff shall transfer $17,353,284.98 of the Fair Fund to Deutsche Bank and the Fund Administrator shall include such monies in its distributions to the affected MFS Funds, as provided for in the Plan of Distribution...." The SEC also ordered that: "The Fund Administrator shall disburse the Residual Distributions ... to the affected MFS Funds, in the amount stated in the validated payment file of $38,631,356.04, as provided for in the Plan of Distribution as hereby modified." According to the SEC: "The Modified Plan of Distribution ('Plan') provides that a Fair Fund consisting of disgorgement and civil penalties, plus amounts from third parties and any accrued interest, be transferred in portions to Deutsche Bank to be distributed by the Fund Administrator to injured investors according to the methodology set forth in the Plan."
34-65245 01-Sep-2011 Administrative Proceeding
Order Directing Disbursement of Distribution Fund
On September 1, 2011, the SEC ordered that the "Commission staff shall transfer $267,227.80 of the Fair Fund to Deutsche Bank and the Fund Administrator shall include such monies in its distributions to the affected MFS Funds, as provided for in the Plan." The SEC also ordered: "The Fund Administrator shall disburse the Residual Distributions to the affected MFS Funds, in the total amount stated in the validated payment file of $23,022,752.60 as provided for in the Plan."
IA-3312 09-Nov-2011 Administrative Proceeding
Order Modifying Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e), 203(f) 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 as to Massachusetts Financial Services Company
On November 9, 2011 the Commission "deems it appropriate and in the public interest to modify the 2004 Order as agreed to in MFS's Offer." MFS submitted an Amended Offer of Settlement proposing to relieve itself of various obligations under the original settlement.
34-81064_3-11393 30-Jun-2017 Administrative Proceeding
Notice of Name Change of Appointed Tax Administrator
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.
34-81701 25-Sep-2017 Administrative Proceeding
Order Authorizing the Transfer to the U.S. Treasury of Remaining Funds and Any Funds Returned to the Fair Fund in the Future, Discharging the Fund Administrator, and Terminating the Fair Fund
According to the SEC: "it is ORDERED that: A. The remaining Fair Fund balance of $1,286.11, 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; C. The Fair Fund is terminated."

Other Defendants in Action: