The Securities and Exchange Commission charged Boca Raton, Fla.-based Geek Securities with civil securities fraud Friday for both market timing and late trading in mutual funds, the Commission announced.
Also named in the suit was a subsidiary, Geek Advisors, Inc., the company president, Kautilya (Tony) Sharma and broker Neil R. Wadhwa. The charge says that the companies and individuals allowed at least nine institutional investors, including a number of hedge funds, to market time and late trade more than 100 mutual funds. Between September 2001 and November 2003, and possibly earlier, the complaint continues, mutual fund firms caught on to their practices and disallowed them to trade in the funds. In response, the SEC said, the defendants tried to hide their and their clients identities to continue trading.
The SEC is seeking relief, disgorgement and monetary penalties from Geek for its actions.