AXA Rosenberg settles with SEC for $65 million

Despite settlement and previous lifetime securities industry ban, Rosenberg admits no wrongdoing

Barr Rosenberg, co-founder of AXA Rosenberg Group LLC, agreed to settle with the U.S. Securities and Exchange Commission (SEC) yesterday over allegations of securities fraud for concealing a coding error in his firm’s investment model.  

AXA Rosenberg programmers inadvertently introduced a coding error in January 2007 that exposed clients to excess risk and caused losses that otherwise may not have occurred. The error eventually was detected in June 2009, but Rosenberg instructed his employees to cover up the mistake and stalled repairs.

Danielle Feinstein

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