A former broker at Fiserv Securities will pay $100,000 to settle allegations leveled by the Securities and Exchange Commission that he placed market timing trades for certain hedge fund clients.

Thomas Gerbasio, who neither admitted nor denied the allegations, will also be barred from association with any broker or dealer, according to the commission in a news release on Monday.

From August 2002 until April 2004, Gerbasio headed a New York office of Fiserv Securities that placed tens of thousands of market timing trades, according to the SEC.

The commission accused Gerbasio of defrauding hundreds of mutual funds and their shareholders by engaging in deceptive market timing practices for two hedge fund clients from at least August 2002 to October 2003. The deceptive practices include misrepresenting the nature of the trades to the funds, opening dozens of accounts under different names to hide the customers' identities from the funds, and trading in funds less likely to detect market timing, the SEC said.

In April last year, Fiserv Securities, unit of Fiserv Inc., agreed to pay $15 million in penalties and disgorgement to settle regulatory charges of improper mutual fund trading. 

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