Ex-broker Sihpol acquitted of late trading in Spitzer setback Tom Henry at 4:27 PM ET
[JURIST] Former Bank of America broker Theodore C. Sihpol was found not guilty Thursday of aiding a New Jersey hedge fund in illegally trading mutual funds [JURIST report] after the close of the stock market. Sihpol was acquitted of 29 counts of larceny, securities fraud, and falsifying business records but State Supreme Court Justice James Yates declared a mistrial on four deadlocked counts, including a scheme to defraud and violations of the state's general business law. Sihpol was the first defendant to go to trial after New York Attorney General Eliot Spitzer [official website] began his investigation of the mutual fund industry [press release] and analysts believe it may prompt other accused executives to face trial instead of seeking settlement, as most have up until now. Bloomberg has more.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.