Former Bank of America broker Theodore Sihpol asked the New York State Supreme Court Monday to dismiss criminal charges against him, Reuters reports. Sihpol was the first person that New York Attorney General Eliot Spitzer arrested in the fund trading scandal, accusing him in September 2003 of colluding with Canary Capital Partners to place illegal trades as late as 8:30 p.m., even providing the hedge fund with an electronic trading platform.

Sihpol, whose trial is expected to begin in February, pleaded not guilty on April 21 to 40 counts of fraud, grand larceny and falsifying business records. He faces between eight and 25 years in prison on the grand larceny counts and another four years for falsifying records, and has been free on $750,000 bail.

Sihpol’s attorney, C. Evan Stewart, a partner with Brown Raysman Millstein Felder & Steiner, argued in his memorandum that his client is being accused of trade-processing activities that were not in violation of securities law prior to his arrest. He further argued that Sihpol is being unfairly singled out, while BoA and Canary faced no criminal charges, and maintained that the government’s accusation that his client stole $1.25 billion of mutual fund shares from six companies is "wrong and unprecedented."

BoA settled for a total of $675 million and Canary $40 million. A spokeswoman for Spitzer’s office declined to comment on the particulars of the case and on Stewart’s memorandum, but said prosecutors are reviewing the motion to dismiss.

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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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