NY Judge Throws Out Sihpol Late Trading Charges

October 12, 2005 (PLANSPONSOR.com) - A New York state judge has dismissed criminal charges against a former Bank of America broker accused of helping a hedge fund carry out late trading transactions of mutual funds.

Justice James Yates of the New York State Supreme Court threw out the fraud and other charges against Sihpol, four months after a jury acquitted the former broker of 29 counts, including the top count of grand larceny (See  Empire State Jury Clears Sihpol of Scandal-Related Charges ). Yates had declared a mistrial on the four remaining counts of fraud, scheming to defraud and falsifying business records

Also Wednesday, a Securities and Exchange Commission (SEC) news release said Sihpol has also accepted a settlement deal on related charges that called for a $200,000 penalty and a five-year prohibition on his taking other securities industry jobs.

The Sihpol fraud charges alleged that Sihpol played a key role in enabling Canary Partners LLP to engage in late trading in shares of mutual funds sold by Bank of America and others (See  Ex-BoA Broker Sihpol Indicted in Scandal ).

More information about Wednesday’s proceedings is  here and  here .