AXA Co-Founder Settles SEC Coding Error Suit For $2.5M

Law360, New York (September 22, 2011, 7:41 PM EDT) -- The co-founder of institutional money manager AXA Rosenberg agreed Thursday to pay a $2.5 million penalty to settle the U.S. Securities and Exchange Commission's claims that he covered up a computer coding error that led to multimillion-dollar losses for investors.

The SEC revealed the deal with Barr M. Rosenberg, who allegedly learned of the coding error at issue in June 2009 but told others to keep quiet about the defect.

News of a pending SEC investigation forced Rosenberg to disclose the problem in March 2010, the...
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