The Securities and Exchange Commission (SEC) has settled an insider-trading civil action case against former Boston-based Evergreen Investment Management Chief Administrative Officer and Senior VP Charles Marquardt.
In early June 2008, the federal agency claims that Marquardt redeemed all of his shares in Evergreen's tanking Ultra Fund, an MBS holding, after learning that the fund "might soon reduce in value." He allegedly took his invested monies out just days prior to its liquidation.
The SEC stated in its Jan. 20 court documents that he and his family were able to avoid more than $18,000 in losses as a result of the move.
"Without admitting or denying the allegations in the Commission¹s complaint², Marquardt consented yesterday to pay $19,107 in disgorgement, $1,242 in prejudgment interest and a $19,107 civil penalty," the SEC said in its settlement.
Looking Back
Back in June 2009, the SEC charged Evergreen Investment Management and its affiliates with overhauling holdings in mortgage-backed securities and selectively disclosing information to investors. In the end, Evergreen agreed to pay nearly $40 million to settle the charges without admitting guilt.
The SEC states the Marquardt inspection is an extension of last year's Evergreen action. Additionally, it said the investigation is still ongoing.
