The former chief administrative officer of Trautman Wasserman & Co. Inc. agreed to pay a $50,000 fine to settle SEC administrative charges he helped facilitate a scheme to engage in late-trading in mutual funds shares on behalf of certain favored customers and for the firm’s own account.
The man who once served as TWCO’s “de facto chief compliance officer” consented, without either admitting or denying wrongdoing, to be barred from the securities industry, cease and desist from future violations and cooperate in the SEC’s investigation.
Earlier this year, the SEC charged the executive, TWCO and five of its other officials over their alleged roles in the scheme. The SEC claims included that he and two others he supervised thwarted efforts by mutual fund companies to curtail excessive timing.
According to the SEC, the three used various means to conceal from the fund companies the identities of the firm’s market timing customers as well as the involvement of two TWCO brokers who were “widely known” to work with market timers.
Shepherd Smith and Edwards represents individuals and institutions with claims against investment firms. If you or your firm are the victim of misconduct by members of the securities industry, hiring an experienced law firm can increase your chances of recovery. Contact us to arrange a free consultation with one of our attorneys.
Related Web Resource:
In re Trautman Wasserman & Co. Inc., SEC, Admin. Proc. File No. 3-12559, 6/29/07
Text of SEC’s Order
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