Friday, June 29, 2007
On June 29, the SEC settled an administrative hearing with Jerome Snyder, the former Chief Administrative Officer of Trautman Wasserman & Company, Inc. (TWCO). The SEC alleged that Snyder participated in a scheme to defraud mutual funds through deceptive market timing. 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.