Hedge Funds

Canary settles with New Jersey for $10m


On January 17, the State of New Jersey announced that Canary Capital Partners and its founder Edward Stern had agreed to pay $10 million to settle allegations of market timing and illegal late-trading of mutual fund shares between 1998 and 2003.

An investigation of hedge fund market-timing activities by New York State Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission led to the downfall of Secaucus, N.J.-based Canary in 2003.

The settlement reached in New Jersey stems from similar charges of illegal and improper trading of mutual fund shares by Canary over the same five-year period ending