Testimony in the Theodore C. Sihpol case further damns the former Bank of America broker, according to Dow Jones Newswires. Michael Brown, who had been Sihpol's boss, said that Sihpol was "placing the orders in a normal period of time 1/4 right after receiving the orders."

Sihpol is facing criminal charges for helping now-defunct hedge fund Canary Capital Partners place mutual fund trades after 4 p.m. but still receive same-day prices. Sihpol's lawyers assert that the former broker was ignorant of mutual fund trading rules and ran practices by his bosses, including Brown.

Brown, however, testified that Sihpol told him that Canary placed trades at 20 to 30 minutes prior to the 4 p.m. close. In March 2003, Brown questioned Sihpol about Canary's trading practices, following inquiries from the bank's compliance officer.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.