On Wednesday a U.S. judge ruled that a British hedge fund firm and its chief had engaged in late trading mutual funds and that they must shell out $76.9 million. Reuters and the Telegraph both reported on the ruling, which was also picked up on by Business Insider.

The judge also tossed the SEC's claims that the hedge fund firm, Pentagon Capital Management, also engaged in mutual fund market timing over the same 1999-2003 time period.

Attorneys for Pentagon's chief, Lewis Chester, said they plan to appeal the late trading decision. The case hinged on a number of e-mails attributed to Chester that directly mentioned and even appeared to detail Pentagon's alleged late trading strategy.

"I really EXPECT you guys to go out of your way to make sure I get late trading," one e-mail said.

The e-mails also include much of what a spokesman for Chester told The Telegraph was "broker banter".

"Poor souls, working past cookie and milk time … for once in your lives, you can work like real men and do a proper day's work. (You really are a bunch of women of the first order)." 

Edited by: Neil Anderson, Managing Editor


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