Brean Murray Censured and Fined for Late Trades

The Securities and Exchange Commission Thursday said it has censured and fined brokerage Brean Murray for allegedly engaging in late trading of mutual fund shares, Reuters reports.

According to the report, New York-based Brean Murray agreed to a settlement with the SEC that imposed a censure and a $150,000 fine on the firm for late trading of fund shares "on behalf of several of its hedge fund customers who were also engaged in market timing."

From August 2001 through Septemeber 2003, Brean Murray processed more than 3,500 trades in fund shares after the 4 p.m. close on behalf of Canary Capital Partners and at least four other hedge fund clients, the SEC said. The late trades were assigned that day's price rather than receiving the next day's price as stipulated by SEC regulations.