Two former financial advisers at
A complaint filed in U.S. District Court in
The brokerage accounts were used to conceal market-timing trading by circumventing existing restrictions, the SEC said.
“The defendants intended to, and did, make it more difficult for the mutual funds to detect and prevent their customers' market-timing trading,” the complaint said.
In less than two years, Goldstein and O’Donnell generated almost $1 million in fees and “in the process harmed countless unsuspecting mutual fund shareholders,” the SEC said.
Goldstein worked at Morgan Stanley DW from October 2000 to November 2003 and is now a registered representative at
The men were not available for comment on Friday, and a Morgan Stanley representative did not have an immediate comment.
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