UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 85403 / March 25, 2019

ADMINISTRATIVE PROCEEDING

File No. 3-18473

____________________________________

 :

In the Matter of :

 : NOTICE OF PROPOSED PLAN OF

VISIUM ASSET MANAGEMENT, LP : DISTRIBUTION AND

: OPPORTUNITY TO COMMENT

Respondent. :

___________________________________ :

Notice is hereby given, pursuant to Rule 1103 of the United States 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 submitted to the Commission a 

proposed plan of distribution (the “Plan”) for the distribution of monies paid by Visium Asset 

Management, LP (the “Respondent”) in settlement of the above-captioned administrative 

proceeding.

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. 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. 

By Order dated August 30, 2018, the Commission created a Fair Fund pursuant to 

Section 308(a) of the Sarbanes-Oxley Act of 2002 (the “Fair Fund”), so that the civil money 

 

1

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

penalty can be added to the disgorgement and prejudgment interest paid by Visium for the 

benefit of harmed investors.2 

By Order dated November 16, 2018, the Commission appointed KCC, LLC as the Fund 

Administrator of the Fair Fund.

3

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 

Catherine E. Pappas, Esq., United States Securities and Exchange Commission, One Penn 

Center, 1617 JFK Blvd., Ste. 520, Philadelphia, PA 19103. 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 should include “Administrative Proceeding File No. 3-18473” in the 

subject line. Comments received will be publicly available. Persons should submit only 

information that they wish to make publicly available.

THE PLAN

The Fair Fund holds more than $10.2 million, comprised of the disgorgement, 

prejudgment interest, civil money penalty paid by the Respondent and accrued interest. The Plan 

proposes to distribute the funds currently in the Fair Fund, less taxes, fees, and expenses, to 

compensate investors in the Credit Fund for the Credit Fund’s overpayment of management fees 

and performance fees. 

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

Vanessa A. Countryman

Acting Secretary

 

2 Order Establishing Fair Fund, Exchange Act Rel. No. 83998 (Aug. 30, 2018). 

3 Order Appointing Fund Administrator and Setting Administrator Bond Amount, Exchange Act Rel. No. 84608

(Nov. 16, 2018).