A Securities and Exchange Commission administrative law judge has dismissed charges against Scott G. Monson, the former general counsel for J.B. Oxford, for allegedly enabling late trading. The SEC had charged Monson with approving more than 12,000 late trades in 600 funds between June 2002 and September 2003.

Although the judge found that Monson contributed to late-trading violations, he couldn’t be held accountable because he didn’t know about the rules or “how mutual funds were priced,” and, therefore, didn’t intentionally break them.

“The division has failed to prove by a preponderance of the evidence that Monson knew, or should have known, that drafting the procedural agreement would contribute to” the firm’s violations, Judge Robert Mahoney wrote.

The SEC may still appeal the decision.

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