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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...