UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 90483 / November 23, 2020

ADMINISTRATIVE PROCEEDING

File No. 3-19715

In the Matter of

Fortress Investment Management, LLC

and William M. Malloy, III,

Respondents.

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NOTICE OF PROPOSED PLAN 

OF DISTRIBUTION AND 

OPPORTUNITY FOR 

COMMENT

Notice is hereby given, pursuant to Rule 1103 of the United State Securities and 

Exchange Commission’s (“Commission”) Rules on Fair Fund and Disgorgement Plans 

(“Commission’s Rules”), 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted 

to the Commission a proposed plan of distribution (the “Plan”) for the distribution of monies 

paid in the above-captioned matter.

On February 27, 2020, the Commission issued an Order Instituting Administrative and 

Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f) and 203(k) of the Investment 

Advisers Act of 1940 and Section 9(b) of the Investment Company Act of 1940, Making 

Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”)1against 

Fortress Investment Management, LLC and William M. Malloy (collectively, the 

“Respondents”). The Commission ordered the Respondents to pay $154,097 in disgorgement, 

prejudgment interest, and a civil money penalties to the Commission. The Commission also 

created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the 

penalties, along with the disgorgement and interest, paid can be distributed to harmed investors 

(the “Fair Fund”).

The Respondents have paid the full amount of $154,097 pursuant to the Order, which 

constitutes the Fair Fund. The Fair Fund is subject to the continuing jurisdiction and control of 

the Commission and has been deposited in an interest-bearing account at the United States 

Department of the Treasury’s Bureau of Fiscal Service (“BFS”). 

 

1 Advisers Act Rel. No. 5452 (Feb. 27, 2020).
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OPPORTUNITY FOR COMMENT

Pursuant to this Notice, all interested persons are advised that they may obtain a copy of 

the Plan from the Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm. 

Interested persons may also obtain a written copy of the Plan by submitting a written request to 

Noel Gittens, United States Securities and Exchange Commission, 100 F Street, NE, 

Washington, DC 20549-5876. All persons who desire to comment on the Plan may submit their 

comments, in writing, no later than thirty (30) days from the date of this Notice:

1. to the Office of the Secretary, United States Securities and Exchange Commission, 100 F 

Street, NE, Washington, DC 20549-1090;

2. by using the Commission’s Internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or

3. by sending an e-mail to rule-comments@sec.gov.

Comments submitted by email or via the Commission’s website should include “Administrative 

Proceeding File No. 3-19715” in the subject line. Comments received will be publicly available. 

Persons should submit only information they wish to make publicly available.

THE PLAN

The Net Available Fair Fund2is comprised of the $154,097 paid by the Respondents 

pursuant to the Order, plus interest and income earned thereon, minus all taxes, fees, and other 

expenses of distributing the Net Available Fair Fund to investors who were harmed by the 

conduct described in the Order. The Plan proposes to distribute the Net Available Fair Fund to 

compensate each Eligible Investor for the management Fees Paid, plus Interest, in addition to a 

pro rata distribution based on each Eligible Investor’s Investment Loss.

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

Vanessa A. Countryman

Secretary 

 

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 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Plan.