Administration December 10, 2005

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.
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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 .

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