The National Association of Securities Dealers this week fined H&R Block Financial Advisors $500,000 and censured the group for allegedly providing a hedge fund client with multiple accounts that the regulator claimed were used to execute market-timing trades of mutual fund shares.
In accepting the settlement, H&R Block Financial Advisors neither admitted nor denied the allegations. In addition to the fine, the advisory group also agreed to reimburse claimed mutual fund losses to the tune of $325,000.
The hedge fund trades of mutual fund shares in question took place between October 2002 and July 2003. The NASD says the case