The NASD last week fined Chase Investment Services $150,00 and ordered it to repay $140,262 to investors for allowing one of its hedge fund clients to market time 19 mutual funds between at least February 2002 and August 2003.

"Deceptive market timing, by hedge funds or any other market participant, is both unfair and harmful to other mutual fund shareholders," said Barry Goldsmith, NASD executive vice president and head of enforcement, in a statement. "In this case, Chase's failure to have systems and controls in place to enforce trading limits set by the mutual funds themselves resulted in a hedge fund gaining an impermissible advantage over other fund shareholders."

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