Theodore C. Sihpol III, a former broker with Bank of America Corp., is about to reach a settlement with the Securities and Exchange Commission for permitting hedge fund Canary Capital Parners to conduct improper mutual fund trades, and it is likely to include a fine and a banishment from the securities industry, people familiar with the matter said. The SEC originally brought its charges against Sihpol two years ago.
Separately, Sihpol is awaiting a possible retrial on four remaining counts of an original 33 in a case that New York Attorney General Eliot Spitzer brought against him in New York State Supreme Court. The jury was hung on the four remaining charges, and a meeting on that retrial is scheduled for Oct. 20.
Although Spitzer's office said in July it would not drop the four remaining counts, it also indicated it would revisit the matter following the SEC's case, The New York Times reports. Sihpol's lawyer and spokesmen for Spitzer and the SEC declined comment.