Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Other Compliance Related Undertaking
Various undertakings
Fair Funds
Plan of Distribution
Monetary Penalties:
Disgorgement
Individual:
$30,000,000.00
Shared:
Civil Penalty
Individual:
$20,000,000.00
Shared:
Total Penalty
Individual:
$50,000,000.00
Shared:
Related Documents:
34-56603
03-Oct-2007
Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Distribution Plan
The Commission ordered that: " for good cause shown, the time for entering an order approving or disapproving the
proposed distribution plan is extended through November 30, 2007."
34-56829
20-Nov-2007
Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Distribution Plan
The SEC stated: "IT IS ORDERED that: Pursuant to Rule 1104 of the Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1104, for good cause shown, the time for entering an order approving or disapproving the proposed distribution plan is extended through December 28, 2007"
34-59000
21-Nov-2008
Administrative Proceeding
Order Directing Disbursement of Fair Fund
The Commission ordered that: "the Commission staff shall transfer $5,753,326.58 of
the Fair Fund and the Fund Administrator shall distribute such monies to investors, as provided
for in the Plan."
IA-2906
20-Jul-2009
Administrative Proceeding
Order Modifying Respondent's Obligation to Undergo Third Party Compliance Reviews
The SEC stated: "IT IS HEREBY ORDERED that:
A. Section IV.E. of the 2004 Order is amended as follows to order:
E. Compliance Review. In 2005 and 2007, Franklin shall undergo a compliance review by a third party, who is not an interested person, as defined in the Investment Company Act, of Franklin. At the conclusion of these reviews, the third party shall issue a report of its findings and recommendations concerning Franklin’s supervisory, compliance, and other policies and procedures designed to prevent and detect breaches of fiduciary duty and federal securities law violations by Franklin and its employees in connection with their duties and activities on behalf of and related to the FT funds. The reports shall be promptly delivered to Franklin’s chief compliance officer, the independent trustees and directors of the FT funds, and to the Compliance or Audit Committee of the board of trustees or directors of each FT fund.
B. All other provisions of the 2004 Order remain in effect."
34-62016
30-Apr-2010
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On April 30, 2010, the SEC ordered that "the Fund Administrator shall disburse the amount stated in the validated payment file, $11,402,009.02, as provided for in the Plan."
34-65390
23-Sep-2011
Administrative Proceeding
Order Discharging Plan Administrator and Terminating Fair Fund
On September 23, 2011, the SEC ordered "the $54,615.08 remaining in the Fair Fund, including a tax return that was returned to the fund, shall be transferred to the U.S. Treasury". The SEC also ordered the termination of the Fair Fund, the discharge of Boston Financial Data Services as the Fund Administrator, and that any funds returned in the future to the Fair Fund shall be transferred to the U.S. Treasury.
