Two hedge fund managers are paying $275,000 to settle with the Securities and Exchange Commission over improper mutual fund trading, the Associated Press reports.
Brent Federighi, a former manager for the Ilytat and Gage hedge funds, is paying a $175,000 civil penalty and is banned from working for an investment advisor for 18 months. Michael Hoffman, who founded Ilytat, is paying a $100,000 civil penalty and is also banned from working for an investment advisor for 18 months.
Federighi was charged with late trading and aiding and abetting Bear Stearns, which processed the trades between 2000 and 2002. In 2006, Bear Stearns paid $250 million to settle related charges.
“Mr. Federighi is delighted to have this matter resolved,” said William Goodman, his attorney. “He is looking forward to re-entering the industry once the terms of the injunction have been complied with.”
Hoffman’s attorney, Tarek Helou, said, “Mr. Hoffman put an end to these trading practices at his firm more than five years ago. He did so long before it became a public issue, and he cooperated fully with the SEC. He is pleased that this is now behind him and is focused on moving forward.”