Securities Exchange Act of 1934
Release No. 34-61745 / March 19, 2010
Administrative Proceeding File No. 3-12805
In the Matter of Evergreen Investment Management Company, LLC, Evergreen Investment Services, Inc., Evergreen Service Company, LLC and Wachovia Securities, LLC Respondents. | : : : : : : : | NOTICE OF PROPOSED PLAN OF DISTRIBUTION AND OPPORTUNITY FOR COMMENT |
Notice is hereby given, pursuant to Rule 1103 of the Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has filed with the Commission the proposed plan ("Distribution Plan") for the distribution of monies in In the Matter of Evergreen Investment Management Company, LLC, Evergreen Investment Services, Inc., Evergreen Service Company, LLC, and Wachovia Securities, LLC. The Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings pursuant to Sections 15(b)(4), 17A(c)(3) and 21C of the Securities Exchange Act of 1934, 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, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order as to Evergreen Investment Management Company, LLC, Evergreen Investment Services, Inc., Evergreen Service Company, LLC and Wachovia Securities, LLC, Administrative Proceeding File No. 3-12805, Exchange Act Release No. 56462, on September 19, 2007. The Commission also issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 15(b)(6) and 17A(c)(4)(C) of the Securities Exchange Act of 1934, Sections 203(f) and 203(k) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940 as to William M. Ennis, Administrative Proceeding File No. 3-12806, Exchange Act Release No. 56464, on September 19, 2007. Among other things, these orders required the Respondents to pay a total of $28,503,280 in disgorgement and $4,150,000 in civil penalties.
OPPORTUNITY FOR COMMENT
Pursuant to this Notice, all interested parties are advised that they may obtain a copy of the Distribution Plan from the Commission's public website, http://www.sec.gov, or by submitting a written request to Kevin M. Kelcourse, Assistant Regional Director, Securities and Exchange Commission, 33 Arch Street, 23rd Floor, Boston, Massachusetts, 02110. Further, all persons desiring to comment on the Distribution Plan may submit their comments, in writing, no later than 30 days from the date of this Notice:
to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090;
by using the Commission's Internet comment form (http://www.sec.gov/litigation/admin.shtml); or
by sending an e-mail to rule-comments@sec.gov.
Comments submitted by e-mail or via the Commission's website should include "Administrative Proceeding File No. 3-12805" in the subject line. Comments received will be available to the public. Persons should only submit information that they wish to make publicly available.
THE DISTRIBUTION PLAN
The Distribution Plan provides for distribution of disgorgement payments in the amount of $28,503,280 and civil penalty payments in the amount of $4,150,000, plus any accumulated interest. The proposed plan provides for distribution of the Fair Fund to eligible investors in the Evergreen Funds identified in the plan to compensate them for losses resulting from market timing. If the Distribution Plan is approved, eligible investors will receive a proportionate share of the Fair Fund as calculated by the Independent Distribution Consultant. The distribution amount will be calculated from information in Evergreen's records, and records obtained from third-party intermediaries. Eligible investors will not need to go through a claims process.
By the Commission.
Elizabeth M. Murphy
Secretary
See Also: Proposed Distribution Plan