SEC Order Directs Disgorgement of Fair Fund for Boeing and Muilenburg
Summary
The SEC has ordered the disbursement of a $218,239,227.18 Fair Fund to harmed investors in the Boeing and Muilenburg case. This follows the approval of a distribution plan and the processing of investor claims.
What changed
The Securities and Exchange Commission (SEC) has issued an order directing the transfer of $218,239,227.18 from a Fair Fund to an escrow account for distribution to harmed investors. This action pertains to the administrative proceedings against The Boeing Company and Dennis A. Muilenburg, stemming from a previous notice of proposed plan of distribution published on October 12, 2023. The Commission approved the plan without modification on May 23, 2024, and all claims have since been processed.
This order signifies the final step in distributing disgorged funds to investors who were harmed. While the primary action is the distribution of funds, regulated entities and legal professionals involved in similar enforcement actions should note the SEC's process for fair fund distribution, including the claim bar date and the role of the Fund Administrator. The substantial amount being distributed underscores the importance of adhering to disclosure requirements and the potential financial consequences of violations.
What to do next
- Review SEC order for details on the distribution plan methodology.
- Ensure internal processes align with SEC disgorgement and fair fund distribution procedures.
- Monitor future SEC enforcement actions for similar distribution plans.
Penalties
Disgorgement of $218,239,227.18 to be distributed to harmed investors.
Source document (simplified)
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 104990 / March 13, 2026 ADMINISTRATIVE PROCEEDING File No. 3-21140 In the Matter of The Boeing Company, Respondent. : : : : : : : ORDER DIRECTING DISBURSEMENT OF FAIR FUND ADMINISTRATIVE PROCEEDING File No. 3-21141 In the Matter of Dennis A. Muilenburg, Respondent. : : : : : : : On October 12, 2023, the Division of Enforcement, pursuant to delegated authority, 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 (“Commission’s Rules”); and simultaneously posted the Proposed Plan of Distribution (the “Proposed Plan”). The Notice advised interested persons that they could obtain a copy of the Exchange Act Rel. No. 98735 (Oct. 12, 2023). 17 C.F.R. § 201.1103.
Proposed Plan from the Commission’s public website or by submitting a written request to Jennifer Cardello via email at cardelloj@sec.gov, or United States Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-5876. The Notice also advised that all persons desiring to comment on the Proposed Plan could submit their comments, in writing, within 30 days of the Notice. The Commission received 2 comments on the Proposed Plan during the comment period. On May 23, 2024, after review and consideration, the Commission issued an order approving the Proposed Plan without modification, and posted the approved Plan of Distribution (the “Plan”). The Plan provides for the distribution of the Fair Fund, plus accumulated interest, less taxes, fees, and expenses, to the harmed investors according to the methodology set forth in the Plan. In accordance with the Plan, the Claims Bar Date has passed and all timely submitted claims have been processed by the Fund Administrator. All investors whose claims have been denied, in whole or in part, have been notified and provided the opportunity to cure. Pursuant to the Plan, the Fund Administrator has submitted a payment file to Commission staff with a reasonable assurances letter as to the completeness and accuracy of the information contained therein. The Commission staff has reviewed and accepted the payment file and requests, pursuant to Rule 1101(b)(6) of the Commission’s Rules, 17 C.F.R. § 201.1101(b)(6), that the Commission authorize the transfer of $218,239,227.18 from the Fair Fund to the Fair Fund’s escrow account at The Huntington National Bank for distribution by the Fund Administrator to eligible investors in accordance with the Plan. Accordingly, it is hereby ORDERED, that Commission staff shall transfer $218,239,227.18 from the Fair Fund to the Fair Fund’s escrow account at the Huntington See Order Approving Plan of Distribution, Exchange Act Rel. No. 100222 (May 23, 2024).
National Bank, and the fund Administrator shall distribute such monies to eligible investors in accordance with the Plan. For the Commission, by the Division of Enforcement, pursuant to delegated authority. Vanessa A. Countryman Secretary 17 C.F.R. § 200.30-4(a)(21)(v).
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