The Securities and Exchange Commission has issued a cease-and-desist against brokerage Pritchard Capital and three of its executives for allegedly having allowed some of its mutual fund customers to late trade mutual funds between 2001 and 2003. The three named in the suit are Thomas W. Pritchard, managing director of Pritchard Capital, and former executives Joseph J. Van Book and Elizabeth A. McMahon.
The SEC maintains that Pritchard failed to document the timing of its customers final confirmations of trades and didn’t have policies or procedures in place to detect or prevent late trading, and that Thomas Pritchard failed to supervise Van Book and McMahon.
The SEC will hold a hearing on the matter before an administrative law judge.