Steven B. Markovitz, a senior trader at hedge fund manager Millennium Partners, pleaded guilty this afternoon in New York Supreme Court to charges of late trading in mutual fund shares. The criminal charges were filed by Eliot Spitzer, New York attorney general. Mr. Markovitz faces four years in prison.
The SEC also brought an administrative charge against Mr. Markovitz, charging that he willfully violated several sections of the Securities Act of 1934 and the Investment Company Act of 1940. Mr. Markovitz did not admit or deny the SEC's allegations, but consented to cease his actions and to be permanently barred from association with an investment adviser and from working in any capacity for a registered investment company. The SEC also is seeking restitution and civil penalties to be determined later, according to a joint statement from the SEC and Mr. Spitzer.