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November 05, 2004 at 07:00 PM
Nov. 5, 2004 — The investment advisor for Fremont mutual funds agreed on Thursday to pay $4.15 million to settle charges that it permitted market timing and late trading in the funds.
Fremont Investment Advisors Inc. will pay $2.15 million and restitution and $2 million in civil penalties under the settlement with New York Attorney General Eliot Spitzer and the Securities and Exchange Commission.
Spitzer had charged that the company permitted select investors to make rapid fire trades in the Fremont Mutual Fds:Global Fund (FMAFX) and the Fremont Mutual Fds:US Micro Cap Fund (FUSMX) between January 2001 and October 2002 at the expense of other shareholders.
In return, one investor had to make and keep an investment in the Fremont New Era Value Fund, one of whose manager’s was the firm’s then president and chief executive officer, Spitzer said.
