"There's discussion about possible lawsuits and insurance claims relating to Bank of America," prosecution witness David R. Kowalski told jurors in
Prosecutors argue that Sihpol's trades were fraudulent. Kowalski said Janus hasn't decided yet whether it will file claims with regulators or insurers over any losses from the trades.
Sihpol, 37, is charged with grand larceny and securities fraud, and faces up to 25 years in prison. His case is deemed important because he is the first defendant to be tried in criminal court as a result of New York State Attorney General Eliot Spitzer's nationwide investigation of the mutual fund industry, which began in September 2003.
Sihpol is accused of allowing Canary to make trades after the
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.