Administration February 9, 2007

Spitzer Charges NY Broker with Late Trading

September 14, 2006 (PLANSPONSOR.com) - A New York City stockbroker on Thursday became the latest to be charged in New York state Attorney General Eliot Spitzer's investigation of abusive mutual fund trading practices.

Reported by

Fred Schneyer

Spitzer announced in a news release that 36-year-old James Wilson of Trautman Wasserman & Co. was charged in an 11-count indictment with late trading. Specific charges included scheme to defraud, falsifying business records and securities fraud in violation of New York state’s Martin Act, according to the announcement.

Spitzer said in the news release that Wilson was charged with the abusive fund trading from late 2000 to September 2003 for late transactions he carried out on behalf of his firm’s hedge fund clients.

He was arraigned Thursday by New York Supreme Court Judge James Yates and released on $25,000 bail.

In July 2005, another Trautman Wasserman broker, Scott Christian, pled guilty to a late trading charge resulting from the same probe, and agreed to cooperate with investigators. The US Securities and Exchange Commission later barred Christian from the securities industry.

In addition to late trading, Spitzer has been investigating allegations of market timing and a variety of fund sales practices.