Former Bank of America ( BAC) broker Theodore Sihpol was indicted Monday on charges he helped a hedge fund engage in illegal late trading of mutual fund shares.

The indictment of Sihpol, one of the first people criminally charged in the far-reaching mutual fund investigation, had been expected. The filing of the 40-count indictment comes nearly a month after Bank of America reached a settlement with regulators over its role in the trading scandal.

In the indictment, Sihpol is charged with multiple counts of grand larceny and falsifying business records. Prosecutors with New York Attorney General Eliot Spitzer allege the former broker assisted Canary Capital Partners, a New Jersey hedge fund, in making illegal late trades in shares of mutual funds.

It was Spitzer's $40 million settlement last September with Canary and hedge fund manager Edward Stern that sparked the sweeping investigation into abusive trading in the $7 trillion mutual fund industry.

Sihpol is scheduled to be arraigned on the newest charges on April 21.

Sihpol's lawyer, Evan Stewart, an attorney in New York with Brown Raysman Millstein Felder & Steiner, said "post-4 p.m. trading is not in fact illegal and cannot properly constitute the basis for criminal liability."

Late trading occurs when a favored customer gets to buy shares of a mutual fund after the 4 p.m. closing price in order to take advantage of late-breaking market-moving news.