October 29, 2006

Hedge Fund Honcho Fined

-- By Pushpa Sathish, Staff Writer

The chairman and CEO of the hedge fund James River Capital Corporation has earned the ire of the securities regulators for his alleged illicit activities during trading in variable annuities. The National Association of Securities Dealers has fined Paul Saunders, a broker, a record $2.25 million and also suspended him from working as a broker for 60 days. The Chicago Tribune reports:

Saunders neither admitted nor denied the NASD's allegations. The NASD said the $2.25 million penalty was the largest fine it has ever imposed on an individual for alleged improper market timing, frequent "in-and-out" trading. That total includes restitution of some $750,000 in illicit profits that Saunders allegedly personally made.

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October 29, 2006 in Gossip & Scandal, Regulation | Permalink




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