Hedge Funds

Regulators fine Merrill Lynch $13.5 million over market timing


Merrill Lynch this week was hit with fines of $13.5 million because of the alleged activities of brokers who allowed the timing of mutual-fund-share trading by a hedge fund. The fines were issued by the states of New Jersey and Connecticut as well as the New York Stock Exchange.

Some 3,700 short-term mutual fund transactions were made in a four-month period in 2002 by brokers based in New Jersey, according to the NYSE. The same brokers, allegedly trying to cover their tracks, used multiple accounts for a single hedge fund client and then transferred those account in and out