Pilgrim Baxter founders settle with SEC for ‘unprecedented’ amount

Pilgrim Baxter founders settle with SEC for ‘unprecedented’ amount

[JURIST] The SEC announced Wednesday that Gary Pilgrim and Harold Baxter, founders of Pligrim Baxter mutual funds, have agreed to pay $80 million each and be barred from associating with mutual funds in settlement of charges the SEC had brought over market timing abuses. The $160 million payment will be added to the $90 million paid by the Pilgrim Baxter firm in 2003, and ultimately will be distributed to injured investors. Stephen M. Cutler, director of the SEC’s enforcement division, said the fines were “virtually unprecedented for individuals in civil cases”. The Financial Times has more. Read the SEC press release, and settlement order.