Bloomberg- Ritchie Capital Management LLC, founder Thane Ritchie and one of their hedge funds will pay almost $40 million to settle regulators’ claims over their alleged roles in illegal late trading of mutual funds.
The firm made trades after the 4 p.m. close of markets from 2001 to 2003 through brokerages including Bear Stearns Securities Corp. and Banc of America Securities, New York Attorney General Andrew Cuomo and the Securities and Exchange Commission said in statements today. The trades, helped by after-hours information, allegedly made $30 million in profits for Ritchie’s Multi-Strategy Global Trading Ltd. hedge fund.
“This agreement ensures that wrongdoers are held responsible, appropriate reforms are adopted, securities laws are honored and long-term investors are assured a level playing field,” Cuomo said in his statement.
