Thursday, 26 March 2015
Last updated 2 hours ago
Jun 30 2009 | 2:14am ET
A defunct British hedge fund has settled U.S. charges that it illegally market-timed and attempted to late-trade mutual fund shares, the Securities and Exchange Commission said.
The Headstart Fund agreed to pay $17 million to settle the charges, filed last year. The extinct fund’s adviser, Headstart Advisors, will pay $200,000, while Najy Nasser, the firm’s chief investment officer, will pay $600,000. Headstart did not admit or deny the SEC’s allegations. Headstart and Nasser were also barred from future violations.
Headstart, while still manages three other hedge funds and a fund of hedge funds, said it was “very pleased” to settle the case.
According to the SEC, the Headstart Fund netted nearly $200 million from the allegedly illicit trading from 1998 through 2003.
The SEC complaint includes a firm document allegedly instructing employees to use “Shakespeare, TV shows or comics” to name new accounts and trading subsidiaries to fool the mutual fund companies, as they are “an untapped pool of names.”
“The Classics have been done to death,” the document reportedly said.
The regulator also cited a July 2003 effort by the hedge fund to allegedly cancel a mutual fund trade after the 4 p.m. deadline.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…