Three former brokers at Merrill Lynch & Co. Inc. and UBS AG, whose allegedly deceptive trades for a hedge fund contributed to $67.5 million in regulatory sanctions, agreed to be barred from the industry in New Jersey.
Christopher Chung, Kevin Brunnock, and William Savino helped Millennium Partners LP mask its identity while making rapid-fire trades from 2001 to 2003, according to a consent order they signed with the New Jersey Bureau of Securities.
The practice, known as market timing, can increase the transaction costs of mutual funds.
Mr. Savino and Mr. Chung agreed to pay $425,000 each in civil penalties; Mr. Brunnock agreed to pay $300,000. UBS paid $54 million in 2006 and Merrill (which was sold to Bank of America Corp. last month) paid $13.5 million in 2005 to settle New York Stock Exchange and state regulatory claims they failed to supervise employees including Mr. Chung, Mr. Savino, and Mr. Brunnock.
The three former brokers agreed last June to be censured and barred from the industry by the NYSE's regulatory arm. In New Jersey the brokers neither admitted nor denied the allegations in an administrative complaint filed in 2005.
A lawyer for Mr. Brunnock, Walter Timpone, did not immediately return a call for comment.