Ritchie pays $40m to settle late-trading charges; sues investors

Fri Feb 8, 2008



Ritchie Capital Management, its founder, Thane Ritchie, and two Ritchie employees have agreed to pay about $40 million to settle charges that they illegally traded mutual fund shares. Separately, the troubled firm has sued two investors who are trying to force its multistrategy fund into involuntary bankruptcy, arguing that the investors have disparaged the firm.

According to the U.S. Securities and Exchange Commission, Ritchie Capital engaged in an illegal late-trading scheme in mutual fund shares from January 2001 through September 2003 for its Ritchie Multi-Strategy Global Fund, which pocketed some $30 million in profits.

During that time, Ritchie “placed thousands of late...

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