Report: Dreyfus Executives Approved Market Timing
April 3, 2006
In early 2002, executives at Dreyfus gave written permission for hedge fund Millennium Partners to engage in market timing in its mutual funds, according to The Wall Street Journal.
The authorization, which conflicts with earlier statements from Dreyfus leadership, was revealed in the testimony of former Merrill Lynch employees who managed the deal while they were with UBS in 2001.
A spokesperson at Dreyfus in New York refused to comment on the testimony, telling The Journal, "It would be inappropriate for us to speculate on the contents of testimony or internal UBS documents that we have never seen, particularly in the context of ongoing proceedings to which we are not a party."
The Dreyfus execs allegedly gave permission to time the company's funds to UBS brokers Christopher Chung, Kevin Brunock and William Savino. The three are currently embroiled in a lawsuit over their dismissal from Merrill, which was based partly on their relations with Millennium. They deny any wrongdoing and argue that Dreyfus gave them permission to market time.
(c) 2006 Money Management Executive and SourceMedia, Inc. All Rights Reserved.