The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Firms Settle Pumping Case Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, August 15, 2001

Firms Settle Pumping Case

by: Sean Hanna, Editor in Chief

The fund industry had better tread with care; the Securities and Exchange Commission has settled its first case as part of an effort to crack down on portfolio pumping and window dressing by funds. This week to firms settled allegations with the SEC and agreed to pay fines related to alleged portfolio pumping. Two former employees also agreed to settlements. The SEC also censured both firms and suspended both employees from the industry for a limited period.

The US unit of ABN AMRO Holding NV and Boston-based Oechsle International Advisors both agreed to pay $200,000 in fines to settle allegations that former employees manipulated prices of securities held in funds through improper trading. The former employees also agreed to each pay fines of $75,000.

The fines were related the failure of both firms to properly supervise employees who purchased securities at the end of the second and third quarters in 1998 with the aim of raising the fund's value.

None of the four parties involved in the allegations either admitted or denied the allegations.

The SEC alleged that taped phone conversations show traders at the two firms -- Angelo Iannone, ABN AMRO's former head of international equities sales trading and Andrew Parlin, a former portfolio manager at Oechsle -- discussed stocks that could easily be moved by orders placed by their funds.

ABN AMRO turned in the pair to the SEC when it uncovered the suspicious trades in the Winter of 1998.  

See the list of all the 2001 Most Influential People

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use