Nov. 17, 2003 — Alliance Cap Mgmt Holding L.P. (AC) has fired two more employees, including the former portfolio manager of the AllianceBernstein Technology/A (ALTFX), in connection with suspect trading of the company’s mutual funds.
In addition, Alliance said that “other employees,” all in its mutual fund distribution unit, have been or will be asked to resign because of their roles in improper fund trading.
The company also said in a press release late Friday that it recorded a $190 million charge against third quarter earnings to cover litigation, shareholder restitution, and other costs stemming from its investigation into trading of the funds.
Alliance said that it asked for resignations from Gerald Malone, who had run the Technology fund and two Alliance hedge funds, and from Charles Schaffran, a marketing executive who sold Alliance hedge funds to investors. Both had been suspended in September.