What are the “additional amounts from other sources” that were paid into the Alliance Fair Fund, as mentioned in FAQ #4?
On April 28, 2005, the SEC settled claims against three former Alliance officers. The SEC had alleged they were involved in market timing activity. These former officers each made payments into the Alliance Fair Fund. The total of their payments was approximately $850,000. Also, on January 9, 2006, the SEC settled claims against Daniel Calugar and the broker-dealer he controlled, Security Brokerage, Inc. At no time did Mr. Calugar work for Alliance. The SEC claimed that Calugar and Security Brokerage, Inc. defrauded mutual fund investors, including Alliance Fund account holders. From this settlement, $70.83 million was added to the Alliance Fair Fund. Please click on the Helpful Documents link to read more about these settlements.
