The late trading and market-timing scandal of mutual funds

The first decade of the 21^st century witnessed several major financial scandals. One of the less studied of these by criminologists is the late trading and market-timing scandal that involved several major mutual funds, hedge funds, money managers and brokerage firms. Until this scandal was revealed in 2003, the mutual fund industry was considered a “clean” industry in which people with modest means could make long term investments with relatively low risk. The late trading/market-timing scandal changed this situation by harming these long-term investors.