Huge fine likely in trading scandal

Monday, Dec. 15, 2003 | 9:25 a.m.

NEW YORK -- Alliance Capital Management Holding LP may pay $250 million to settle mutual-fund trading abuse allegations, the highest penalty levied against a U.S. money manager by regulators, people familiar with the situation told Bloomberg News.

Alliance, which has said it favored some clients by allowing them to trade mutual-fund shares more often than other customers, also may agree to cut the fees it charges as part of a settlement with New York State Attorney General Eliot Spitzer, said the people, who declined to be identified.

archive