Millenium Settles Market Timing Allegations
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Millenium Partners a New York hedge fund has agreed to pay $180m to settle allegations that it engaged in "fraudulent" trading of mutual funds. Israel Englander the firms founder will pay $30m, two management companies $26.6m. Millenium will pay $121.4m. The balance will be met by the chief operating officer and general counsel. The action was brought jointly by Eliot Spitzer, New York Attorney General and the Securities and Exchange Commission. Director of Enforcement at the SEC, Linda Chatman Thomsen commented that the case underlined how vigourously the agency would pursue all those implicated in the mutual fund trading scandal. For its part Millenium said: "We agreed to these civil settlements, in which we neither admitted nor denied serious allegations, as a business decision in order to put this matter behind us." The allegations centre on the period between 1999 and 2003. Profits in the tens of millions of dollars are said to have been made. Improper trading of mutual funds shares of market timing allegedly led to the profits. Long-term Investors are damaged by perpetrators rapidly buying and selling mutual fund shares. Millenium allegedly created a "multi-pronged scheme" to get round complaints by the mutual funds.
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