The Securities and Exchange Commission announced it had reached a settlement Tuesday with two brokers for engineering a scheme that facilitated market timing and late trading at the cost of long-term mutual fund shareholders. Lawrence S. Powell and Delano Sta. Ana, former registered representatives of the Boca Raton. Fla.-based brokerage firm Kaplan & Co. Securities, did not admit or deny the findings.

They were ordered to pay a total of $750,000, split evenly, after the SEC found that they employed several methods to hide the identities of their customers from mutual funds to allow rapid in-and-out trading in those funds. Among them, Powell and Sta. Ana used Kaplan's New York branch office to set up a second branch code to allow customers to time the funds that had banned them and Kaplan's Florida branch. Also, the brokers helped customers establish accounts with multiple clearing firms to help hide their identity.

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