INVESTMENT ADVISERS ACT OF 1940
Release No. 2275 / August 11, 2004
INVESTMENT COMPANY ACT OF 1940
Release No. 26531 / August 11, 2004
ADMINISTRATIVE PROCEEDING
File No. 3-11524
In the Matter of PILGRIM BAXTER & ASSOCIATES, LTD., Respondent. |
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ORDER AMENDING JUNE 21, 2004 ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS AND AN ORDER TO CEASE AND DESIST PURSUANT TO SECTIONS 203(e) AND 203(k) OF THE INVESTMENT ADVISERS ACT OF 1940, AND SECTIONS 9(b) AND 9(f) OF THE INVESTMENT COMPANY ACT OF 1940 |
On June 21, 2004, the Securities and Exchange Commission ("Commission") instituted an Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and An Order to Cease and Desist Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (the "June 21, 2004 Order") against Pilgrim Baxter & Associates, Ltd. ("PBA" or "Respondent").1 The June 21, 2004 Order provides that:
PBA shall, within 20 days of the entry of this Order, pay the Disgorgement and Penalty described in Section IV.D.1. into an interest bearing escrow account at a federally insured banking institution with deposits of not less than $100 billion pursuant to an escrow agreement not unacceptable to the staff of the Commission. Such agreement shall, among other things: (1) require that the escrow agent be bonded appropriately; and (2) provide that the funds in such escrow account be disbursed only pursuant to order of the Commission. PBA shall be responsible for all costs associated with the escrow account, pending the approval and execution of a distribution plan. (June 21, 2004 Order, paragraph IV.D.3)
In response to Respondent's request that the Commission permit the escrow agent to invest the funds, the Commission has determined that a modification allowing investment of the funds in short-term U.S. Treasury securities with maturities not to exceed six months to be appropriate and in the public interest and orders that paragraph IV.D.3. of the June 21, 2004 Order be amended to state:
PBA shall, within 20 days of the entry of this Order, pay the Disgorgement and Penalty described in Section IV.D.1. into an escrow account at a federally insured banking institution with deposits of not less than $100 billion pursuant to an escrow agreement not unacceptable to the staff of the Commission. The escrow agent shall then, as soon as reasonably possible, invest all funds in the escrow account in short-term U.S. Treasury securities with maturities not to exceed six months. Such agreement shall, among other things: (1) require that the escrow agent be bonded appropriately; and (2) provide that the funds in such escrow account be disbursed only pursuant to order of the Commission. PBA shall be responsible for all costs associated with the escrow account.
By the Commission.
Secretary
See also: IA-2251
Endnotes