Daniel Calugar, a poster boy for the mutual fund trading scandals, pleaded guilty Wednesday, to defrauding investors, according to
As part of a deal, Calugar, who owned Security Brokerage in Las Vegas, pleaded guilty to one count of felony fraud. He will be sentenced in New York State Supreme Court on March 23. He faces up to four years in prison.
"I am very happy when a guy like Calugar does time," Mercer Bullard, founder of mutual fund shareholder advocacy group
Calugar's deal with Spitzer comes two weeks after he settled a case with the
Spitzer claimed that Calugar, whose shop was in Las Vegas, but who lived in Los Angeles, cut a deal with two employees at
In October, Calugar settled a $72 million Federal class-action lawsuit brought by shareholders of the fund. Franklin settled civil charges of fraud with the SEC for $50 million in August 2004.