Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fund Firm Fined Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, September 05, 2002

Fund Firm Fined

by: Tony Pennino

The Securities and Exchange Commission has decided to institute public administrative and cease-and-desist proceedings against Davis Selected Advisers-NY, Inc. The regulatory body charges that the Davis Opportunity Mutual Fund (RPEAX) was engaged in the rapid trade of initial public offerings -- or "IPO flipping" -- without informing shareholders.

The firm has agreed to pay a fine without acknowledging its guilt or innocence one way or the other, according to an article in today's LA Times. IPO flipping in and of itself is not illegal, but the adviser failed to disclose it was engaged in that activity.

"It is disappointing that the SEC finds that misleading performance numbers is a less serious offense than it was a couple of years ago," Mercer Bullard, founder of Fund Democracy, told the MutualFundWire.com. In 1999 in a similar case involving Van Kampen, that firm was charged with a $100,000 fine (and the responsible executive faced a fine of $25,000).

"The cost of the fine should have been going up, not falling like the stock market," contended Bullock. "Now, the fine has lost 90 percent of its value. This fine is not even a slap on the list. It is surprising in this environment of Enron and Worldcom that Davis would be let off with such a meaningless penalty and that the SEC would send such a message of unconcern about this violation to the industry."

To view the SEC's decision, follow this link

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use