Another Bear Stearns Exec Warned of SEC Action
Regulators looking into Bear Stearns' (BSC) role in the mutual fund trading scandal are considering bringing an enforcement action against a second top executive in the firm's securities clearing operation.
The Securities and Exchange Commission has notified Michael Zackman, a Bear Stearns senior managing director, that he could face civil charges for assisting hedge funds and brokers engaged in abusive trading of mutual fund shares. The SEC's New York office, which is heading up the 16-month-old investigation, notified Zackman of its intentions last month, according to a copy of his broker registration statement obtained by TheStreet.com.
Zackman, responsible for overseeing Bear's relationships with the hundreds of small brokerages that clear stock trades through the firm, has been on a leave of absence for nearly a year. On his registration statement, Zackman said "there is no basis for the SEC to bring a proceeding against him in this matter."
Martin Auerbach, Zackman's attorney, could not be reached for comment.TheStreet.com
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