On December 1, 2006, the SEC instituted settled administrative and cease-and-desist proceedings against Jefferies & Co., Inc. and Scott Jones. According to the SEC: "This proceeding concerns [Kevin] Quinn's provision of approximately $2 million in extensive travel, entertainment and gifts to certain employees of an investment adviser (the 'Fund Adviser') to a family of mutual funds (the 'Funds'). The employees included several securities traders, whose responsibilities included directing securities transactions for the Funds to brokerage firms for execution, and the head of the Fund Adviser's global equity trading desk ('Head of Equity Trading'), who supervised the securities traders and decided which securities brokerage firms would be approved to handle equity transactions for the Funds." Kevin Quinn was an account executive and senior vice president, equity and sales, at Jefferies until his termination on October 11, 2004.

On December 9, 2010, the Commission ordered that: "the Division of Enforcement shall not be required to submit a proposed plan for the administration and distribution of a Fair Fund in this matter." According to the SEC: "The Commission has subsequently determined that a Fair Fund is not appropriate in this matter."