The SEC settled a market timing case with Jerome Snyder, the former Chief Administrative Officer of Trautman Wasserman & Company, Inc. (TWCO), a registered broker-dealer. The SEC alleged that Snyder participated in a scheme to defraud mutual funds through deceptive market timing. The SEC further stated that Snyder took steps to deceive mutual fund companies about TWCO's customers' market timing to evade the mutual fund companies' efforts to curtail the practice. Snyder received numerous warning or kick out letters from mutual funds requesting TWCO to stop market timing, but Snyder did not stop the market timing as the funds requested. Instead, Snyder signed numerous account opening forms for TWCO and assisted in procuring multiple broker numbers for two TWCO brokers, who then used the multiple accounts and broker numbers to deceive mutual funds about the identity of their customers in order to market time mutual funds.

Please click to access the press release announcing the administrative action.