Friday, 26 December 2014
Last updated 1 day ago
Jan 16 2007 | 4:01pm ET
A former trader at hedge fund Millennium Partners has avoided jail time by cooperating with investigators in the mutual fund after-hours trading scandal that rocked the financial community back in 2003.
Steven Markovitz was sentenced to five years probation and 300 hours of community service on Tuesday for his role in late-trading at Millennium. A probe into the illegal practice of trading mutual funds after the closing bell was spearheaded by then-New York Attorney General Eliot Spitzer, who now serves as the state’s governor.
Thomas Fitzpatrick, a lawyer for Markovitz, said that he thought the sentence was appropriate, and that it reflected the fact that his client has cooperated with regulators.
Millennium coughed up $180 million in penalties in late 2005 in order to end Spitzer’s probe of the firm. Over the last few years, the attorney general's office has reportedly recovered more than $4 billion in similar settlements from the industry.
“I'm here today because 3½ years ago, I broke the law,” Markovitz said. “At the time I believed this practice was in a gray area and did not understand I was committing a felony.”
Markovitz has also agreed to be permanently barred from working with a registered investment company.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.