Malaysia Sun – A phone call from a New York whistleblower led to a $30 million settlement in what’s been called one of the biggest scandals in mutual funds history.
Whistleblower Noreen Harrington tipped off investigators to the scandal, which involved hedge funds making improper mutual fund trades and ripping off small investors, The Washington Postreported.
When a staff lawyer for New York Attorney General Eliot L. Spitzer returned Harrington’s phone call, Harrington talked about capacity, market timing, and after-hours trading. She talked mainly aboutthe Stern family, with whom she had worked since 2001, investing money into largely unregulated investment pools, mainly for wealthy people.
