Ex-CIBC Brokers Accused Of Market-Timing

Law360, New York (February 1, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has filed a suit against two former CIBC World Markets Corp. traders, alleging that the brokers engaged in market-timing with mutual fund accounts.

The SEC has initiated proceedings against Michael Sassano and Dogan Baruh, claiming the two former brokers worked with hedge funds to make a series of rapid trades using mutual fund accounts.

Market-timing, which involves making short-term trades with high frequency, is not necessarily illegal, but is prohibited by many mutual funds.

“Mutual funds, for example, repeatedly detected...
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