Pentagon Capital Management PLC and Lewis Chester were found liable for securities fraud for late trading in the mutual fund market, an activity the defendants dubbed "dynamic asset allocation". The district court ordered the defendants to disgorge $38,416,500 and imposed an equal civil penalty. The Court, noting that deceitful intent is inherent in the act of late trading, upheld the disgorgement order. Whether the defendants were brokers or advisers, their actions as "architects" of the late trading scheme violated securities laws. The Court remanded the case for further proceedings to address statute of limitations and joint and several liability issues. SEC v. Pentagon Capital Management PLC, Lewis Chester