An internal review at Charles Schwab found late trading and market timing, the company admitted in its third-quarter filing, The Wall Street Journal reports.

Schwab began its review when it learned New York Attorney General Eliot Spitzer was examining its practices as part of his probe of the fund industry. The company said the number of occurrences was small, but since an analysis of the trades has not been completed, an exact number has not yet been discovered.

"A small number of parties were permitted to engage in short-term trading," the company admitted of its Exelcsior Funds unit run by U.S. Trust Corp.

As far as late trading, the company said it found "a limited number of instances at Schwab in which fund orders may have been entered or processed after the 4 p.m. closing time in a manner contrary to Schwab policies."

Besides Excelsior, a Schwab spokesman said the other improper trades happened at third-party funds not run by the company.

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