Complaint Filed Against AG Edwards
St. Louis, MO – Massachusetts Secretary of State Bill Galvin has filed a complaint against St. Louis-based AG-Edwards. He claims the firm defrauded mutual fund shareholders through a practice called market-timing.
Market timing uses quick trades to skim profits from long-term shareholders to the benefit of favored short-term investors.
AG Edwards says it will vigorously defend the complaint.
Galvin alleges a representative in the Boston office of AG Edwards engaged in the practice twice between 2001-2003. The complain seeks compensation for any losses by mutual fund shareholders, as well as an unspecified fine.