Theodore C. Sihpol III, a former broker with Bank of America who was just fired from his job, has been charged with state criminal and federal civil charges.

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 Sihpol’s allegedly permitting Canary Capital Partners and other hedge funds to conduct late trading in Bank of America’s 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 Spitzer’s 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.

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.