Banc of America Securities LLC

Background:  On March 14, 2007, the SEC instituted settled administrative proceedings against Banc of America Securities LLC.  The SEC alleged, among other things, that BAS failed to address conflicts of interest that compromised the independence and integrity of its analysts during the period 1999 to 2001.  These conflicts resulted in the publication of materially false and misleading research reports on Intel Corporation, TelCom Semiconductor, Inc., E-Stamp Corp. and, to a lesser extent, Amazon.com stocks.  As part of the settlement, BAS agreed to pay a total of $26 million in disgorgement and civil penalties, which was put into a Fair Fund to benefit customers of the firm who purchased stock in the affected companies during the relevant time period.

The SEC appointed Francis McGovern as the distribution fund administrator.  A distribution plan was prepared by Professor McGovern and posted for public review and comment on August 9, 2007.  There were no comments, and the plan was approved by the SEC on September 20, 2007. 

Further Information:  To help you better understand the SEC's Banc of America Securities Settlement, answers to frequently asked questions are provided at the Distribution Fund Administrator’s website.

If you can't find the answer to your question, or if you need assistance with filing a claim, please use the following contact information:

For more information on the SEC’s action, you can also read the following case documents:

• The SEC’s press release and administrative order instituting proceedings in In the Matter of Banc of America Securities LLC, Release No. 34-55466 (Mar. 14, 2007)
• SEC’s Order Appointing Distribution Fund Administrator and Directing Submission of the Proposed Distribution Plan, Release No. 34-55467 (Mar. 14, 2007)
• SEC’s Order Approving Administrator’s Bond, Release No. 34-56451(Sept. 18, 2007)
• Notice of Proposed Distribution Plan and Opportunity for Comment, Release No. 34-56234 (Aug. 9, 2007)
• SEC’s Order Approving Distribution Plan, Release No. 34-56472 (Sept. 20, 2007)

http://www.sec.gov/divisions/enforce/claims/bofasecurities.htm