Alger Wells Update - January 18, 2007 Alger settled all late-trading and market timing issues with both the SEC and the NYAG offices. The terms of the settlement are those previously stated. Alger settled the allegations without admitting or denying responsibility in an effort to move forward and focus the company solely on creating shareholder value and providing superior investment management. Full story
Official SEC settlement Morningstar write-up
Alger Wells Update - June 9, 2006 June 9, 2006, Fred Alger Management announced that it had reached an agreement in principle with the staff of the New York Regional Office of the Securities & Exchange Commission and with the staff of the New York Attorney General’s office resolving all issues related to allegations of mutual fund market timing and late trading. Alger is working closely with the staff of the SEC and the NYAG to finalize the agreement. In the proposed settlement agreement, without admitting or denying liability, Alger will consent to the payment of $30M to reimburse fund shareholders; a fine of $10M; and certain other remedial measures, including a reduction in management fees of $1M per year for five years. The entire $40M and fee reduction will be for the benefit of Alger shareholders. Without admitting any liability, Fred Alger Management is eager to put these allegations behind them and continue to provide superior investment management for its shareholders.
Fred Alger Management Receives Wells Notice from SEC - December 16, 2005 Fred Alger Management Company was issued a Wells Notice[1] citing SEC allegations pertaining to market timing issues between 2000 and 2003. While Freedom One Investment Advisors was aware of the SEC investigation, the allegations are just now being presented by the SEC.
Upon hearing about the Wells notice, Freedom One Investment Advisors immediately initiated a conference call with Alger President and Portfolio Manager, Dan Chung. Based upon this discussion, Freedom One Investment Advisors understands the Alger position and believes that it has merit. At the same time Freedom One Investment Advisors takes very seriously any allegations by the SEC.
The next step is a conference between Alger and the SEC. The outcome of course is uncertain at this time. We will continue to monitor the situation and maintain a hold position on Alger Mid Cap Growth Fund.
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[1] A Wells Notice is a document issued by the SEC giving companies a chance to respond to formal allegations prior to official charges being made. It gives recipients an opportunity to explain any improprieties and convince regulators that forward movement on such actions is unnecessary. | 
