Hedge fund Beacon Rock Capital has agreed to pay $475,000 to settle charges that it market timed mutual funds between 1999 and 2003, the Associated Press reports. It is the first criminal case against a hedge fund for market timing.

According to the U.S. attorney’s office, Beacon Rock and Thomas Gerbasio, an executive at a broker/dealer in Philadelphia, set up more than 30 accounts to engage in market timing, earning a profit of $2.4 million for Beacon Rock and $215,000 for Gerbasio.

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