Fred Alger Pays $45 Million To Make Market Timing Allegations Go Away

Fred Alger Management Inc. has agreed to a $45 million settlement of charges involving market timing and late trading, the U.S. Securities and Exchange Commission reports. Newly minted New York state Attorney General Andrew Cuomo said Alger will pay $30

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Fred Alger Management Inc. has agreed to a $45 million settlement of charges involving market timing and late trading, the U.S. Securities and Exchange Commission reports. Newly minted New York state Attorney General Andrew Cuomo said Alger will pay $30 million in restitution and $10 million in civil penalties. The firm also agreed to reduce its fees by $5 million over five years. According to Cuomo’s statement, Alger’s prospectuses dictated a limit of six trades per year designed to prevent timing, but this was “routinely” waived for hedge funds and other big investors.

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