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. The team joined Merrill in January 2002, after working together in the Paramus, N.J., office of UBS. This month, the NYSE fined ex-UBS branch manager John Borgese $50,000for failing to supervise his three charges’ market-timing practices in 2001. All three brokers lost their licenses in New Jersey. Susan Necheles, who is representing the CBS group, did not return calls seeking comment. UBS likewise declined to comment. 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. 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.  

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