To pay for his legal costs, the first broker to face criminal charges under the wide-ranging mutual fund probe has sued his former employer, Bank of America, The Wall Street Journal reports.
Theodore Siphol, who New York Attorney General Eliot Spitzer charged with helping a hedge fund illegally trade fund shares, says his legal fees totaling $130,000 should be incurred by Bank of America. However, the bank sent a letter to Siphol on Oct. 13 saying it wouldnt pay for any of Siphols legal fees.
The hedge fund, Canary Capital Partners LLC, has already settled with Spitzers office for $40 million. Siphol has denied that he partook in the grand larceny or violation of business law, the two criminal charges he faces.
Although it wouldnt comment on this specific incident, Bank of America said through a spokesperson that it is fully cooperating with Spitzers requests. Lawyers for Siphol were not available for comment.