{"id":4499,"date":"2007-07-18T13:43:18","date_gmt":"2007-07-18T13:43:18","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/07\/sec_fines_of_invesco_and_aim_a_1"},"modified":"2021-09-20T15:41:41","modified_gmt":"2021-09-20T20:41:41","slug":"sec-fines-of-invesco-and-aim-a-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-fines-of-invesco-and-aim-a-1\/","title":{"rendered":"SEC Fines of Invesco and AIM Advisors to Fund $375 Million in Payments to Victims of Late Trading Fraud in Mutual Funds"},"content":{"rendered":"<p>\t\t\t\tAfter a widespread investigation into late-trading of mutual funds the SEC levied sanctions against various mutual fund management companies and others, including fines as well as orders to disgorge profits and to reimburse the victims of the fraudulent trading.  In 2004, Invesco was ordered to pay $325 million and AIM Advisors was ordered to pay $50 million. <\/p>\n<p>The basis of the fraud was simple:  Closing prices of mutual fund shares are set based on closing prices of the shares held in the funds.  However, inflow and outflow of funds can legitimately occur based on orders placed prior to the close. The fraudulent orders were placed after the market closed but were made to appear as earlier orders. Those transacting the late orders had the unfair advantage of news announced after the close as well as post-closing changes in stock prices.  <\/p>\n<p>Over several years, billions were reaped from such improper market timing activities.  The victims of the fraud were the millions of legitimate owners of the mutual funds.  The SEC has established what it calls &#8220;Fair Funds&#8221; to reimburse victims of late trading and other scams.  This week over $300 million will be also distributed to Time Warner shareholders who bought based on improper financial data.  The SEC says that, with these distributions, the total paid from Fair Funds now tops $2 billion. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-fines-of-invesco-and-aim-a-1\/\"  title=\"Continue Reading SEC Fines of Invesco and AIM Advisors to Fund $375 Million in Payments to Victims of Late Trading Fraud in Mutual Funds\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>After a widespread investigation into late-trading of mutual funds the SEC levied sanctions against various mutual fund management companies and others, including fines as well as orders to disgorge profits and to reimburse the victims of the fraudulent trading. In 2004, Invesco was ordered to pay $325 million and AIM Advisors was ordered to pay [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3749,3799,3760],"tags":[],"class_list":["post-4499","post","type-post","status-publish","format-standard","hentry","category-market-timing","category-mutual-funds","category-sec-enforcement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Fines of Invesco and AIM Advisors to Fund $375 Million in Payments to Victims of Late Trading Fraud in Mutual Funds &#8212; Investor Lawyers Blog &#8212; July 18, 2007<\/title>\n<meta name=\"description\" content=\"After a widespread investigation into late-trading of mutual funds the SEC levied sanctions against various mutual fund management companies and others, &#8212; July 18, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-fines-of-invesco-and-aim-a-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Fines of Invesco and AIM Advisors to Fund $375 Million in Payments to Victims of Late Trading Fraud in Mutual Funds &#8212; Investor Lawyers Blog &#8212; July 18, 2007\" \/>\n<meta name=\"twitter:description\" content=\"After a widespread investigation into late-trading of mutual funds the SEC levied sanctions against various mutual fund management companies and others, &#8212; July 18, 2007\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC Fines of Invesco and AIM Advisors to Fund $375 Million in Payments to Victims of Late Trading Fraud in Mutual Funds &#8212; 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