"Former Alger manager to plead guilty

Connelly expected to plead guilty to charge of tampering with evidence in mutual fund trading probe.
October 16, 2003: 9:43 AM EDT

NEW YORK (CNN/Money) - In what will be the third time New York State Attorney General Elliot Spitzer has filed criminal charges in his widening probe of illegal mutual fund share trading, a former senior executive at Fred Alger Management Inc. is expected to plead guilty to one count of tampering with evidence Thursday, a source familiar with the investigation said.

James Connelly Jr., who until days ago was vice chairman of Alger's brokerage unit and head of mutual-fund sales and marketing, has turned himself in to authorities and will plead guilty to one count of encouraging Fred Alger employees to destroy emails related to the investigation.

Alger is one of several of mutual fund companies that Spitzer is investigating for allowing hedge funds to trade its shares at the 4 p.m. closing price, after 4 p.m. The practice, known as "late trading," is illegal. Hedge funds named in the investigation so far include Canary Partners and Millennium partners, but a source familiar with the matter said the hedge fund Alger dealt with was neither. "

So tampering with evidence? This should be enough to shut the entire firm down. I mean, Arthur Andersen was sent to the professional hell after they shredded documents. Deleting emails is the same thing... let's just hope that there is the same treatment with Fred Alger. Otherwise, you know something is up with the Enron scandal. His name is George W. Bush.

This page is powered by Blogger. Isn't yours?