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UNITED STATES OF AMERICA 

Before the 

SECURITIES AND EXCHANGE COMMISSION
 

SECURITIES EXCHANGE ACT OF 1934 

Release No. 62200 / June 1, 2010 

ADMINISTRATIVE PROCEEDING 

File No. 3-12678 

: 

In the Matter of : 

: ORDER APPROVING PLAN, 

 Haidar Capital Management, LLC, : APPOINTING A FUND 

Haidar Capital Advisors, LLC, and : ADMINISTRATOR, AND

 Said N. Haidar, : WAIVING BOND 

: 

Respondents. : 

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On July 6, 2007, the Commission entered an Order instituting settled 

administrative and cease-and-desist proceedings against Haidar Capital Management, 

LLC, Haidar Capital Advisors, LLC, and Said N. Haidar (collectively, “Respondents”) 

in this matter (“Order”). In the Matter of Haidar Capital Management, LLC, et al., 

Admin. Proc. File No. 3-12678, Securities Act Release No. 8820 (July 6, 2007). In the 

Order, the Commission authorized the establishment of a Fair Fund, comprised of 

$4,580,000 in disgorgement, interest, and penalties paid by Respondents, for 

distribution to mutual funds affected by certain market timing trading by Respondents. 

The Order provided that the Fair Fund was to be distributed pursuant to a distribution 

plan developed by an Independent Distribution Consultant (“IDC”). The Respondents 

retained Gordon J. Alexander as the IDC, who has developed a proposed distribution 

plan (the “Plan”) in consultation with the Division of Enforcement and Respondents. 

On April 13, 2010, the Commission published a “Notice of Proposed Plan of 

Distribution and Opportunity for Comment” (“Notice”) pursuant to Rule 1103 of the 

Commission’s Rules on Fair Fund and Disgorgement Plans, 17 C.F. R. § 201.1103 

(Exchange Act Release No. 61897). The Notice advised all interested parties that they 

may obtain a copy of the Plan from the Commission’s public website, or by requesting 

one from Stephen Webster, Assistant Regional Director, Fort Worth Regional Office. 

The Notice also advised all persons desiring to comment on the Plan that they 

may submit their written comments no later than 30 days from the date of the Notice by 

sending them to the Office of the Secretary, by using the Commission’s Internet 

comment form, or by e-mailing rule-comments@sec.gov. The Commission received 
 

no comments on the Plan, and no modification has been made to the Plan since the 

publication of the Notice. 

The Plan provides for distribution of the Fair Fund to eligible mutual funds that 

were harmed by the actions of certain market timers that Respondents permitted to 

market time. The Plan describes the procedures to be used to identify the eligible 

mutual funds that will receive distributions. The Plan further describes the procedures 

to be used to calculate the amounts to be paid, and distributed to, the eligible mutual 

funds. Eligible mutual funds will not be required to make a claim or submit 

documentation to establish their eligibility. 

The Plan also proposes Rust Consulting, Inc. as the Fund Administrator and sets 

forth, among other things, procedures for the administration of the Fair Fund, including 

a proposed timeframe for the termination of the Plan. 

Rust Consulting, Inc. has not posted the bond generally required of third parties 

under Fair Fund Rule 1105(c). Pursuant to Rule 1105, the bond requirement may be 

waived for good cause shown. The Fair Fund will be held at the U.S. Department of 

the Treasury and will be disbursed by Treasury. All distributions in this matter will be 

made by the Treasury’s Financial Management Service (“FMS”) directly to the eligible 

mutual funds, with no handling of money by the Fund Administrator or any nongovernmental entity. The payees, and the relative amounts to be paid by FMS to each, 

will have been reviewed and approved by the Commission prior to the distributions. 

The staff requests that the Commission approve the Plan, appoint Rust 

Consulting, Inc. as the Fund Administrator, and waive the bond requirement of the 

Fund Administrator for the good cause shown in the Plan. 

Accordingly, pursuant to Fair Fund Rule 1104, it is hereby ORDERED that the 

Plan is approved. 

It is hereby FURTHER ORDERED, pursuant to Fair Fund Rules 1105(a) and (c) 

that Rust Consulting, Inc. is appointed as the Fund Administrator in accordance with the 

terms of the Plan and that the bond requirement is waived for good cause shown. 

For the Commission, by its Secretary, pursuant to delegated authority. 

 Elizabeth M. Murphy 

Secretary 

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