A former Wachovia securities broker who allowed clients to buy shares in an unregistered hedge fund was named in a fine-seeking complaint by the Massachusetts financial regulator Monday, Reuters reports.

"This is a particular egregious case," Secretary of the Commonwealth William Galvin said in a statement. "The broker knew that he was doing was wrong. The hedge fund was unregistered and clearly unsuitable for his clients. Then the broker tried to cover it all up."

Gerald Stonehouse, who was fired after his superiors found he sold shares of the Futronix Futures Fund to seven clients, has already told investigators that he knew he was breaking the law, and even admitted that he told those he allowed to trade not to disclose anything to Wachovia.

The seven clients apparently lost 85% of their investment, or $350,000, and were the ones who complained about Stonehouse’s bungle in a June letter to Wachovia. The amount of the requested fine has not yet been released.

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