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SEC Announces $18 Million Fair Fund Distribution to Investors Affected by Undisclosed Market Timing in Janus Mutual Funds

The distribution is the first in a series that will return approximately $100 million to harmed investors as part of the Commission's 2004 settlement with JCM. The firm had been charged with facilitating undisclosed market timing in some of its mutual funds.

"This case provides a tremendous amount of satisfaction to our staff as we are able to provide funds to hundreds of thousands of harmed investors," said Dick D'Anna, Director of the SEC's Office of Collections and Distributions. "We look forward to completing the full distribution in the coming months."

Donald M. Hoerl, Acting Regional Director of the SEC's Denver Regional Office, said, "We are very pleased to begin distributing money in the Fair Fund to Janus investors harmed by market timing misconduct. This distribution is another example of the Commission's ongoing commitment to return money to injured investors."

The Fair Fund provision of the Sarbanes-Oxley Act of 2002 provides the SEC with authority to distribute financial penalties along with disgorgement to injured investors. Since 2002, more than $4 billion has been returned to investors.

The SEC brought and settled public administrative and cease-and-desist proceedings in 2004 against JCM. Without admitting or denying the Commission's allegations, JCM consented to a Commission Order charging anti-fraud violations and requiring the respondents to pay $50 million in disgorgement and $50 million in civil penalties for distribution through a Fair Fund. In addition to disgorgement and civil penalties, JCM also consented to a cease-and-desist order and a censure, and agreed to undertake certain compliance and mutual fund governance reforms.

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