The Associated Press reports the SEC on Wednesday submitted for court approval a settlement with Brent Federighi, a former manager for hedge funds Ilytat and Gage, which includes payment of a $175,000 civil penalty and a ban from working for an investment adviser for 18 months. Separately, Michael Hoffman, who founded Ilytat, agreed to pay a $100,000 civil penalty and accepted an 18-month ban on working for an investment adviser, the news report said.
Federighi was accused of fraud in connection with late trading, and the SEC claimed Hoffman aided and abetted Bear Stearns & Co., which had allegedly processed the improper trades over a two-year period starting in 2000. In March 2006, Bear Stearns agreed to pay $250 million to settle related SEC charges (See Bear Stearns Charged with Market Timing, Late Trading ).
Both Federighi and Hoffman settled without admitting or denying wrongdoing, according to the AP.