Improper trades in its Pacific Capital Funds
may cost the Bank of Hawaii. The bank notified shareholders on Friday that it received a Well Notice form the SEC stating that it faces possible action over trades in the funds.
The SEC staff sends Wells Notices to targets of investigations to give them a chance to explain their case.
The notice was sent to the bank's Asset Management Group, three of its current executives and one former executive. According to the bank, the SEC is examining trades in the funds made during 2002 and 2003 by an unnamed former employee in his retirement account. That employee allegedly gained $110,000 through the trades. He had been fired by the bank.
The bank also said that it will reimburse the fund for the loss and that it will take a $3.8 million pretax charge in the third quarter.
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