The Securities and Exchange Commission has reached administrative settlements with several former Alliance Capital Management LP executives, resolving their part in the market-timing scandal.

The SEC issued an order instituting cease-and-desist proceedings against John Carifa, the former president and chief operating officer of Alliance Capital. The order finds that Alliance Capital provided “timing capacity” in certain funds to a market-timer and that Carifa was aware of and did not object to this market-timing.

It also said he signed the funds’ prospectuses after becoming aware of this market timing, and that they were misleading because they did not disclose Alliance Capital’s practice of providing market timing capacity in return for investments in Alliance Capital’s hedge funds.

The commission ordered Carifa to cease and desist, it suspended him from associating with an investment adviser or an investment company for 12 months, and prohibited him from serving as an officer or director of an investment adviser or investment company for three years. He must also pay a US$375,000 civil penalty and disgorgement of $1. Carifa consented to the order without admitting or denying the findings.

It also instituted and simultaneously settled administrative and cease-and-desist proceedings against two other former officers of Alliance Capital.