Defendant Name:
AXA Rosenberg Group LLC
Defendant Type:
Subsidiary of Public Company
Document Reference:
2011-37
Document Details
Legal Case Name
In the Matter of AXA Rosenberg Group LLC, AXA Rosenberg Investment Management LLC, and Barr Rosenberg Research Center LLC
Document Name
SEC Charges AXA Rosenberg Entities for Concealing Error in Quantitative Investment Model
Document Date
03-Feb-2011
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On February 3, 2011, the SEC stated that: "[It] charged three AXA Rosenberg entities with securities fraud for
concealing a significant error in the computer code of the quantitative
investment model that they use to manage client assets. The error caused
$217 million in investor losses.
AXA Rosenberg Group LLC (ARG), AXA Rosenberg Investment Management
LLC (ARIM), and Barr Rosenberg Research Center LLC (BRRC) have agreed
to settle the SEC's charges by paying $217 million to harmed clients plus a
$25 million penalty, and hiring an independent consultant with expertise in
quantitative investment techniques who will review disclosures and enhance
the role of compliance personnel."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Compliance Related Independent Consultant
Other Compliance Related Undertaking
Other Undertakings: "a payment of approximately $217 million to redress harm from the coding error to the clients of ARIM and other ARG-affiliated advisers."
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC
Monetary Penalties:
Civil Penalty
Individual:
Shared:
$25,000,000.00
Shared with: AXA Rosenberg Investment Management LLC; Barr Rosenberg Research Center LLC
Other Defendants in Action: