campbell
02-06-2011, 01:39 PM
As Nixon learned, it's not the crime -- it's the coverup; or in this case, it's not the screwup that was the crime. But hiding one's screwup for too long, hoping the market will cover you.
http://www.businessweek.com/ap/financialnews/D9L5I5I00.htm
An investment firm is paying $242 million to settle civil fraud charges that it hid an error in its computer code that resulted in losses for its clients, federal regulators said Thursday.
The settlement with AXA Rosenberg Group announced by the Securities and Exchange Commission is among the largest for the agency and is the first of its kind.
....
The SEC said the error came into the computer model in April 2007. It was eventually corrected, but the CEO of AXA Rosenberg Group wasn't told about it until November 2009, the agency said. The firm did its own investigation and told SEC examiners about the error in March 2010. The firm's clients were informed on April 15.
AXA Rosenberg agreed in the settlement to pay investors the $217 million they were said to have lost, as well as a $25 million civil fine. The firm also agreed to hire an independent consultant in quantitative investment techniques to review its disclosures.
"We deeply regret that the coding error adversely impacted many of our clients," AXA Rosenberg's chairman, Dominique Carrel-Billiard, said in a statement. "The exhaustive review that we undertook of this matter reflects our commitment to regaining our clients' confidence and restoring trust."
I wonder if I should go work for the SEC. I'm very good at finding screwups.
http://www.businessweek.com/ap/financialnews/D9L5I5I00.htm
An investment firm is paying $242 million to settle civil fraud charges that it hid an error in its computer code that resulted in losses for its clients, federal regulators said Thursday.
The settlement with AXA Rosenberg Group announced by the Securities and Exchange Commission is among the largest for the agency and is the first of its kind.
....
The SEC said the error came into the computer model in April 2007. It was eventually corrected, but the CEO of AXA Rosenberg Group wasn't told about it until November 2009, the agency said. The firm did its own investigation and told SEC examiners about the error in March 2010. The firm's clients were informed on April 15.
AXA Rosenberg agreed in the settlement to pay investors the $217 million they were said to have lost, as well as a $25 million civil fine. The firm also agreed to hire an independent consultant in quantitative investment techniques to review its disclosures.
"We deeply regret that the coding error adversely impacted many of our clients," AXA Rosenberg's chairman, Dominique Carrel-Billiard, said in a statement. "The exhaustive review that we undertook of this matter reflects our commitment to regaining our clients' confidence and restoring trust."
I wonder if I should go work for the SEC. I'm very good at finding screwups.