Izzy Stradlin’ Fines and Employee Sanctions

The long-standing SEC investigation into Israel Englander and his firm’s involvement in the mutual fund timing scandal of 2003 drew to a conclusion yesterday. Englander and his $5 billion hedge fund, Millenium Partners, were fined a combined $180 million. In addition to personally signing off on many of the hundreds of brokerage accounts used in the scheme, Englander also allegedly allowed employees to use his home address to hide Millenium’s connection to a related annuity scheme. In addition to former trader Steven Markowitz, who’s currently awaiting sentencing, three other employees, including the general counsel and chief operating officer, were fined and sanctioned. (The fund does not admit or deny charges.) It’s not like the size of the fines are likely to meaningfully inconvenience Englander (who reportedly made over $200 million last year), and since he’s famous for being a social recluse, he doesn’t have to worry about ostracism either. Sounds like it’s back to business as usual.
Hedge Giant Fined [NY Post]
Millenium Settles With Spitzer [Bloomberg]

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