Reuters- A Chicago-area hedge fund, its investment adviser, chief executive and two employees have agreed to pay $40 million to settle charges that they were involved in an illegal late-trading scheme, authorities said on Tuesday.
The U.S. Securities and Exchange Commission, which conducted the probe along with the New York attorney general’s office, said it charged Ritchie Multi-Strategy Global Trading Ltd and its Chicago-based adviser, Ritchie Capital Management LLC, as well as Ritchie Capital’s founder and CEO, A.R. Thane Ritchie, and employees Warren DeMaio and Michael Mauriello, in the case.
The settlement is the latest in a series of similar agreements with mutual fund companies, brokerages and hedge funds stemming from charges of trading abuses in the mutual fund industry.
