Former Stockbroker Agrees to $153 Million Settlement for Illegal Trading
By Danielle Briones
Published on January 11, 2006
According to the SEC, Daniel Calugar, the former head of Security Brokerage, Inc., gained more than $175 million by engaging in market timing and illegal late trading.
The complaint claims that Calugar used mutual funds managed by several companies to make rapid trades, as well as buy and sell after the 4:00 p.m. market closing time.
The terms of the settlement require Calugar pay $103 million in earnings, as well as a $50 million fine.
In a previous class action lawsuit, Calugar paid a $72 million settlement.
The Securities and Exchange Commission has put $103 million of the settlement in an escrow account that will be distributed among victims, bringing total restitution for harmed investors to $175 million.
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