New York State Attorney General Eliot Spitzer charged Sihpol Tuesday with criminal grand larceny in the first degree and securities fraud, and the Securities and Exchange Commission charged him with federal civil charges. Both charges stem from Sihpols allegedly permitting Canary Capital Partners and other hedge funds to conduct late trading in Bank of Americas Nations Funds.
Each criminal count Sihpol faces is a felony. If he is convicted of grand larceny, Sihpol faces a mandatory term in state prison. He surrendered in connection with Spitzers filing.
"This is a wide-ranging and continuing investigation which is likely to result in numerous other charges," Spitzer announced at a press conference announcing the charges.