Canary Capital Partners and its former managing principal, Edward Stern, reached a $10 million settlement with New Jersey Attorney General Peter C. Harvey, the attorney general's office announced Tuesday. The fine is being imposed for market timing and late trading mutual funds and the mutual fund sub-accounts of variable annuities to the detriment of long-term shareholders.

As part of the agreement, Stern and Canary have agreed to cooperate fully with the attorney general's office and the New Jersey Bureau of Securities and are barred for 12 years from acting as broker/dealers or investment advisors.

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