Millennium’s Market-Timing Brokers Barred In New Jersey

Feb 5 2009 | 12:29am ET

Three former brokers who allegedly helped hedge fund Millennium Partners deceptively market-time mutual funds are now barred from the securities industry on both sides of the Hudson River.

The former Merrill Lynch and UBS brokers, Christopher Chung, Kevin Brunnock and William Savino, the so-called “CBS Group,” signed a consent order with the New Jersey Bureau of Securities, banning them from the industry in the Garden State. In June, the trio were censured and permanently barred by the New York Stock Exchange.

Chung, Brunnock and Savino used a variety of deceptive practices to allow Millennium to continue market-timing despite receiving more than 150 stop notices from mutual funds seeking to end the practice. The trio even ignored an order from their bosses at Merrill to stop the trading. All told, they helped Millennium make some 25,000 short-term trades in mutual fund shares between 2001 and 2003.

“The hard-earned money of investors was put at unnecessary risk by the illegal actions of these individuals,” Anne Milgram, the New Jersey Attorney General, said.

The CBS Group’s New Jersey trading licenses were revoked four years ago. Chung and Savino have agreed to pay $425,000 each in civil penalties, while Brunnock has agreed to pay $300,000; all three neither admitted nor denied the allegations.

RELATED STORIES

Hedge Fund Market-Timers Barred By NYSE


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note