Three A.G. Edwards & Sons Inc. brokers are being ordered to pay $750,000 in fines for their participation in a market-timing scam that involved mutual funds that benefited certain customers.
The brokers, Thomas Bridge, James Edge, and Jeffrey Robles, were also ordered to serve suspensions from the securities industries. Bridge, a former registered representative in the firm’s Boca Raton, Florida office, must also disgorge $39,808.53. Edge was the branch manager at the same office. Robles worked as a branch manager at Edwards’ Back Bay office.
Securities and Exchange Commission Chief Administrative Law Judge Brenda Murray ordered the sanctions. The market-timing scam occurred from the Edwards’ branch offices in Lake Worth, Boca Raton, and Boston.
According to the ALJ, Bridge participated in market timing to benefit a customer, while Edge failed to properly supervise Bridge-despite notices from mutual funds that Bridge was in violation of certain policies.
The ALJ is also accusing Bridge of market-timing in secret-concealing transactions by using several broker ID numbers and account numbers.
Robles failed to properly supervise Charles Sacco, who is accused of engaging in market timing for two hedge fund customers. Sacco has already settled the SEC charges against him.
Edwards also has settled SEC supervisory charges-related to the market-timing scheme. The firm agreed to pay $3.86 million in civil penalties, fines, and disgorgement, as well as hire an independent consultant.
Broker misconduct of any kind is wrong-especially when it negatively affects the money of investors. The law firm of Shepherd Smith and Edwards is dedicated to fighting for investors who do lose money from this type of misconduct and helping them recover their losses.
Related Web Resources:
Read the SEC Order (PDF)