Two Charged With Market-Timing For Hedge Funds

Dec 17 2007 | 3:30pm ET

The Securities and Exchange Commission has slapped a pair of financial advisers for deceptive mutual fund trading on behalf of hedge fund clients.

The regulator sued former Morgan Stanley advisers Darryl Goldstein and Christopher O’Donnell—both of whom still work in the financial industry—with making more than 4,000 market-timing trades with a  total trading volume in excess of $4.8 billion, all for a pair of hedge funds.

The complaint says the pair used deceptive techniques between January 2002 and August 2003 to skirt the mutual funds’ market-timing restrictions.

The action was filed Friday in Manhattan federal court.

Goldstein now works at Gilford Securities, while O’Donnell is at Bear Stearns.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

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

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of