Alliance Capital and Deutsche Bank are two other giants that New York’s top regulator may come down on next, according to reports this morning in The New York Times and Reuters.

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.

Meanwhile, New York Attorney General Eliot Spitzer is reportedly investigating Deutsche Bank, which owns Scudder Investments and Invesco Funds, late trading and market timing. The bank issued a statement yesterday saying: "To our knowledge, no regulator has ‘targeted’ Deutsche Bank in these industry-wide inquiries."

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.