Hedge fund companies Haidar Capital Management and Haidar Capital Advisors, along with their over, Said Haidar, have settled mutual fund trading charges by the Securities and Exchange Commission with a fine of $4.58 million. Haidar and his companies, however, neither admitted to nor denied the charges.
The SEC said that the companies earned profits of $3.3 million on $143 million in rapid mutual fund trades between 2001 and 2003 and that to shield its activity, the company created eight subsidiaries to carry out these trades, used broker/dealers with multiple registered representative numbers and also placed trades through variable annuities.
Haidar placed these trades with Southwest Securities, which, in 2005, paid $10 million to settle charges that it failed to supervise brokers who permitted abusive trades.
“We believe this settlement is in the best interests of our investors and our companies,” Shawn Pattison, a Haidar spokesman, told Reuters.“We note that the settlement places no restrictions on our business, and, as always, we remain focused on generating superior returns for our shareholders.”