SEC Collars Simpson Capital For Late Trading Scheme

Jun 29 2007 | 11:37am ET

The Securities and Exchange Commission has filed civil fraud charges against hedge fund shop Simpson Capital Management along with founder Robert Simpson and head trader John Dowling.

Between May 2000 and September 2003, Simpson and Dowling allegedly defrauded hundreds of mutual funds and their shareholders of approximately $57 million when they placed thousands of illegal late trades after the close of the market, according to the SEC.

The duo used five separate introducing broker-dealers to place more than 10,700 trades in over 375 mutual funds with some trades being placed as late as 5:45 p.m. Simpson and Dowling both earned some $19 million and $996,000 respectively during this period.

The SEC is seeking permanent injunctions, disgorgement of all ill-gotten gains together with prejudgment interest, and civil monetary penalties.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...