James Connelly, Jr., a former vice chairman for Fred Alger Management , turned himself in to New York State Attorney General Eliot Spitzer Thursday, Reuters reports. He also pled neither innocent or guilty to a cease-and-desist order from the Securities and Exchange Commission barring him from working at any broker/dealer or investment advisory firm and fining him $400,000. Connelly was expected to plead guilty to ordering employees to destroy documents and e-mails indicating the firm might have allowed late trading, a source told Reuters. The SEC charged him with permitting select investors to market time the Alger funds in exchange for promising to make large deposits in other of the fund complex’s funds.

Besides Connelly and the firm itself, the New York regulator is expected to bring criminal or civil charges against a number of other Alger employees.

Reuters was unable to reach Connelly or his attorney for comment, and an attorney representing the firm declined to comment. The company has hired an independent auditor to determine if late trading or market timing took place.

Connelly took an active role resurrecting the firm after it suffered the devastating blow of losing 70% of its employees in the terrorist attack of Sept. 11, 2001.

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