NEW YORK (AP) — A former broker pleaded guilty Thursday to a felony for illegal late trading of mutual fund shares, part of a broadening investigation touching well-known names in the hedge fundbusiness.<\/p>\n
Steven B. Markovitz, 41, admitted he and other traders with Millennium Partners bought and sold mutual fund shares at the closing price after the New York market closed.<\/p>\n
His plea requires him to cooperate with New York Attorney General Eliot Spitzer’s sweeping investigation of the mutual fund industry.<\/p>\n
Under Securities and Exchange Commission rules, trades made after 4 p.m. Eastern time must be made at the next day’s price, set at market close. Investors who engage in late trading can take advantage of events that occurred after the markets close and profit in ways other shareholders can’t.<\/p>\n
Millennium’s illegal trades took place roughly from early last year until July, the complaint said. Assistant Attorney General Kevin Suttlehan would not say how much profit might have been generated for Millennium, which has more than $4 billion under management.<\/p>\n
Markovitz could face up to four years in prison when sentenced on Dec. 15.<\/p>\n
Also, in partial settlement of fraud allegations by the SEC, Markovitz agreed to be barred for life from the securities industry.<\/p>\n
Markovitz and his lawyers declined comment as they left court. He is free without bail.<\/p>\n","protected":false},"excerpt":{"rendered":"
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