Daniel Calugar today agreed to pay more than $150 million to settle charges of late trading and market timing. The SEC charged that Mr. Calugar and his defunct brokerage firm, Security Brokerage Inc., defrauded mutual fund investors, primarily those managed by Alliance Capital Management and Massachusetts Financial Services, in late 2003.
Mr. Calugar agreed to pay a total of $153 million, including a civil penalty of $50 million, to settle a civil lawsuit brought by the SEC. The civil penalty is the largest so far imposed by the SEC on an individual for market timing or late-trading abuses. As part of the settlement, Mr. Calugar, whose firm shut down in November 2003, agreed to a permanent ban on associating with any brokerage firm.
Mr. Calugar previously paid $72 million to settle a class-action lawsuit related to market timing.