Summary Box: Money manager settles fraud case

AP News
Posted: Sep 22, 2011 4:14 PM
Summary Box: Money manager settles fraud case

MANAGER SETTLES: The co-founder and former chairman of AXA Rosenberg is paying $2.5 million to settle federal fraud charges. He will also be banned from the securities industry for life, the Securities and Exchange Commission said Thursday.

BIG LOSSES: Barr M. Rosenberg learned of the coding error in June 2009, federal regulators said. The error was not disclosed to clients until April 2010. By then, clients lost $217 million.

EXECUTIVE `RELIEVED': Rosenberg's attorney, Jonathan R. Bass, said his client is "relieved" that the settlement is over and that he never intended to "cause harm to AXA Rosenberg clients or to gain any advantage or any benefit for himself."