WASHINGTON – The U.S. Securities and Exchange Commission has distributed more than $103 million to investors it says lost money because of improper trades involving Banc of America Capital Management LLC and several affiliates.
The distribution is the first in a series that will return about $375 million to more than 1.5 million affected investors and more than 525 funds, as part of the SEC’s 2005 settlement with several divisions of Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC).
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SEC officials alleged that Banc of America Capital Management, BACAP Distributors and Banc of America Securities allowed improper market timing and late trading in Nations Funds and other mutual funds. Bank of America had acquired the Nations Funds as part of its purchase of FleetBoston Financial Corp. in 2004.
The SEC ordered the units to pay $250 million in disgorgement and $125 million in civil penalties.
The U.S. Sarbanes-Oxley Act of 2002 gave the SEC new authority to distribute financial penalties paid by securities-law violators directly to injured investors. Using this authority, the agency has already distributed more than $3.9 billion.
The latest distribution “demonstrates the commission’s commitment to returning money from wrongdoers,” Dick D’Anna, director of the new SEC office of collections and distribution said in a statement.
Bank of America (NYSE: BAC) is one of the world’s largest financial institutions, with clients in 175 nations, including 98 percent of the U.S. Fortune 500 and 80 percent of the Fortune Global 500. In the United States it serves more than 56 million consumers and small businesses via more than 5,700 retail offices and 17,000 ATMs. To learn more, visit www.bankofamerica.com.
