A former brokerage subsidiary of Fiserv Inc. is ordered by the Securities and Exchange Commission to pay as much as $15 million in fines for an illegal mutual fund trading scheme.
The Securities and Exchange Commission has also fined several former employees of Fiserv Securities Inc. which was sold off in March, including its former chief operating officer Dennis Donnelly who faced the fine of $50,000 and was suspended from associating as a supervisor with any broker or dealer for nine months.
The company does not expect further expences in the probe that cost Fiserv $5 million it got illicitly from the unit and $10 million in a civil penalties. "We see this as the end of the investigation," said Fiserv spokesman Chuck Doherty.
Dennis Donnelly was fined for failing to conduct the investigation over the actions of two of its employees, Thomas Gerbasio and Raymond Braun Jr., between August 2002 and October 2003 after several mutual funds filed complaints.
Fiserv neither admitted nor denied the charges.