Spitzer May Hit Alliance, Deutsche Bank Next

New York and the SEC are investigating whether Alliance permitted Canary Capital Partners and Las Vegas Daniel Calugar to market time its funds – and may press charges. Calugar reportedly moved more than $100 million in and out of Alliance Capital funds in return for investing $20 million in some of Alliance’s hedge funds. The Times left an unanswered message for Calugar at a number in Ponte Verda Beach, Fla.
Alliance has suspended two executives for suspected market timing. The firm has not identified the two, but a source says they are Gerald T. Malone, manager of the Alliance Bernstein Technology Fund, and Charles B. Shaffran, director of marketing for Alliance hedge funds. A third individual, Mark Marxer, has left the firm and may also be implicated, according to people briefed on the situation. Marxer worked with Shaffran and is now working at a hedge fund. Reached yesterday, Marxer declined to comment.