Credit Herald

An administrative law judge with the Securities and Exchange Commission ordered three brokers with the former A.G. Edwards brokerage firm to pay fines and give up money netted in a market timing scheme based in Massachusetts and Florida.

In May, A.G. Edwards agreed to pay $3.86 million in fines to settle federal charges that it failed to supervise brokers in the scheme, which involved frequent trades in clients’ mutual fund accounts. Trades occurred from September 2001 until September 2003.

Market timing usually involves frequent trades, trying to capitalize on swings in the stock market. By itself, the practice is not illegal. But many mutual funds prohibit the practice.

In an initial order issued Monday, the judge ordered the brokers to pay fines of $250,000 each. The brokers and additional penalties are:
•Thomas C. Bridge, 40, of Fort Lauderdale, Fla., who was ordered to pay $39,808 in funds from the scheme 1500 payday loans. Bridge is suspended from associating with a brokerage firm for a year.

•James D. Edge, 45, of Lake Worth, Fla., was suspended for 30 days and barred from supervisory roles at brokerage firms. He had been Bridge’s supervisor in Edwards’ Boca Raton, Fla., branch.

•Jeffrey K. Robles, 38, of Kingston, Mass., was suspended for 30 days and barred from supervisory roles at brokerage firms. Robles had been the branch manager at Edwards’ Boston Back Bay office.

Wachovia Corp. bought A.G. Edwards in October and merged it with its brokerage subsidiary, Wachovia Securities. Wachovia declined to comment on the matter, including whether the brokers still work for the company.

jerristroud@post-dispatch.com | 314-340-8384

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