At The Bell

Life imitating art imitating life

Federal authorities, as if they had stock in “Boiler Room,” raided a brokerage based 15 floors above InvestmentNews’ New York headquarters a day before the Ben Affleck film opened. Two Generation X principals and two top brokers of Golden Lender Financial Group were arrested on charges of hawking $5 million worth of bogus private placements. The company lost $2.8 million last year, the feds say, adding that some of the 160

victims were elderly and living on fixed incomes. A source close to the investigation says execs wielded small baseball bats to intimidate brokers who deviated from sales scripts. Lawyers for the accused would not comment or weren’t available. Beside its other problems, the company was behind in its rent, the feds say.

Dalbar chief accused of sexual harassment

The founder and president of Boston mutual fund research firm Dalbar Inc. is battling a $500,000 sexual harassment suit by former receptionist Mary E. Mayo. In a complaint filed in December in Middlesex Superior Court in Massachusetts, she accuses Louis Harvey of making sexual advances, then firing her after she hired a lawyer. Ms. Mayo, a six-year employee, could not be reached for comment. Mr. Harvey called the charges “ludicrous.”

Fee-only planners take in accountants group

The trade group for fee-only financial advisers has taken over a group for fee-only accountants. The National Association of Personal Financial Advisors, based in Buffalo Grove, Ill., says it has brought under its roof the 200 members of Licensed Independent Network of CPA Financial Planners in Nashville, Tenn. Napfa has 672 members, and has grown by 20% in the last two years, says its chairman, Gary Schatsky.

Levitt warns directors

Securities and Exchange Commission Chairman Arthur Levitt told a meeting of independent mutual fund directors that his agency will conduct a special review of their companies’ websites, sales literature and advertisements. Speaking at the Mutual Fund Directors Education Council in Washington, he said he will see if the ads tell the truth about actual portfolio performance and investment strategies.

Brokers, fund companies give big

Brokers and mutual fund companies, anticipating action on key financial privacy and pension bills, have so far donated more than $14 million in the 2000 election campaign, reports Reuters. Republicans have thus far collected $8.6 million, while Democrats have received $5.7 million.

Among financial services companies contributing, Fidelity’s parent, FMR Corp., gave $57,877; Putnam Investments $18,500; American Century Investments $2,500; and Aim Management Group $8,000.