WASHINGTON ? A former California investment executive is paying $2.5 million to settle federal charges that he hid a computer error that resulted in financial losses for clients. He will also be banned from the securities industry for life.
The Securities and Exchange Commission says Barr M. Rosenberg, the co-founder and former chairman of AXA Rosenberg, learned of the coding error in June 2009. But the SEC says he told others to keep it quiet and not fix it immediately The error was not disclosed to clients until April 2010, after they lost $217 million.
The investment firm is also paying $242 million to settle civil fraud charges.
AXA Rosenberg, based in Orinda, Calif., is owned by French insurance company AXA SA.
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