2nd Circ. Nails Ex-Pritchard Broker Over Trading Fraud

Law360, New York (August 8, 2011, 3:06 PM EDT) -- The Second Circuit on Monday ruled that a former Pritchard Capital Partners LLC stockbroker defrauded mutual funds by letting hedge funds execute late trades, warranting stiff punishment from the U.S. Securities and Exchange Commission.

The appeals court flatly rejected John VanCook’s challenge to the SEC’s decision to bar him from the securities industry and impose more than $850,000 in disgorgement and fines for exploiting loopholes in a Banc of America Securities LLC trading system that allowed him to close on favorable mutual fund trades well after...
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