UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 84608 / November 16, 2018

ADMINISTRATIVE PROCEEDING

File No. 3-18473

In the Matter of 

VISIUM ASSET MANAGEMENT, LP

Respondent. 

ORDER APPOINTING FUND 

ADMINISTRATOR AND SETTING 

ADMINISTRATOR BOND AMOUNT

On May 8, 2018, the Commission issued an Order Instituting Administrative and Ceaseand-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the 

Securities Exchange Act of 1934, and Sections 203(e) and 203(k) of the Investment Advisers Act 

of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the 

“Order”)1against Visium Asset Management, LP (“Visium”). The Commission determined that, 

from at least July 2011 to December 2012, Visium, through two of its portfolio managers, 

engaged in a mismarking scheme, using sham broker quotes to falsely inflate the value of 

securities held by a fund for which Visium acted as investment adviser (the “Credit Fund”). As a 

result, the Credit Fund reported falsely inflated returns, overstated its net asset value (“NAV”), 

misclassified certain distressed assets, and paid approximately $3.15 million in falsely charged 

performance and management fees. The Commission ordered Visium to pay to the Commission 

disgorgement of $4,755,223, prejudgment interest of $720,711, and a civil money penalty of 

$4,755,223. The Commission further ordered that the entirety of the monetary relief could be 

distributed to investors harmed by the conduct described in the Order (the “Harmed Investors”) if 

a Fair Fund is established pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as 

amended.

Visium has paid in full and the Commission currently holds more than $10.2 million, 

comprised of $5,475,934 in disgorgement and prejudgment interest, a $4,755,223 civil money 

penalty, and accrued interest. 

On August 30, 2018, the Commission issued an Order Establishing a Fair Fund, creating

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

 

1

Securities Act Rel. No. 10494 (May 8, 2018). 
2

the civil money penalty can be added to the disgorgement and prejudgment interest paid by 

Visium for the benefit of harmed investors.

2

The Division of Enforcement now seeks the appointment of KCC, LLC (“KCC”) as the 

fund administrator in the above-captioned proceeding and requests that the administrator’s bond 

be set at $10,231,157, as required by Rules 1105(a) and 1105(c) of the Commission’s Rules on 

Fair Fund and Disgorgement Plans (“Rules”).3 KCC is included in the Commission’s approved 

pool of administrators. 

Accordingly, it is hereby ORDERED, that KCC is appointed as the fund administrator,

pursuant to Rule 1105(a) of the Rules, 17 C.F.R. § 201.1105(a), and the administrator shall 

obtain a bond in the amount of $10,231,157, in accordance with Rule 1105(c) of the Rules, 

17 C.F.R. § 201.1105(c). 

For the Commission, by the Division of Enforcement, pursuant to delegated authority.4

Brent J. Fields

Secretary

 

2 Exchange Act Rel. No. 83998 (Aug. 30, 2018).

3

 17 C.F.R. §§ 201.1105(a) and 201.1105(c).

4

 17 C.F.R. § 200.30-4(a)(17).