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And New York State Attorney General Eliot Spitzer is also considering pressing separate charges alleging improper trading activities against Calugar.
Calugar, a 50-year-old attorney who launched a private brokerage business in Las Vegas dubbed Security Brokerage, which he has now shut down, profited by trading mutual funds after 4 p.m., a blatant violation of securities regulations known as late-trading, according to regulators. Calugar, who one source called a "Zelig" master of disguise, avoided detection until recently by often running late orders through his own firm and logging the trades at 3:59 p.m. Calugars personal history of aggressive mutual fund trading dates back to the 1980s. By 2003, his own investment portfolio reportedly grew to $500 million.
Soon after regulators launched their investigation, Calugar withdrew $350 million from accounts at MFS, shuttered Security Brokerage and departed the United States.