Three Merrill Lynch brokers who were booted from the firm amid market-timing charges in 2003 are now under investigation by the New York Stock Exchange, according to The Wall Street Journal.

Known as the "CBS Group," the triumvirate-Christopher Chung, Kevin Brunnock and William Savino-were accused of helping hedge fund clients improperly trade mutual funds.

This month, the NYSE fined ex-UBS branch manager John Borgese $50,000 for failing to supervise his three charges' market-timing practices in 2001. All three brokers lost their licenses in New Jersey.

In 2005, the NYSE fined Merrill Lynch $13.5 million for failure to stop the CBS group's trading. The exchange and New Jersey Bureau of Securities levied $49.5 million in fines on UBS.

Merrill was also ordered to pay the three brokers $15 million for sullying their reputations by the NYSE arbitration panel. That case is pending appeal in the New York State courts.

(c) 2007 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.