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

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.