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participated in a scheme to defraud mutual funds and their shareholders by using multiple deceptive devices to facilitate its customers’ market timing and late trading of mutual funds. More specifically, after mutual funds blocked customers’ market timing trading, World Markets’ RRs created new accounts for their customers, created new RR numbers, and used platforms at other broker-dealers to deceive mutual funds about the source of their customers’ market timing trading, and the activities of its customers. World Markets also took numerous trades from one market timing customer after 4:00 p.m. EST, and then submitted those orders as though the customer had placed the order prior to 4:00 p.m. ET., thereby ensuring those trades received that day’s NAV. In doing so, World Markets harmed the mutual funds and their remaining shareholders by diluting the mutual funds’ next day NAV.

51.

As a result of the conduct described above, World Markets willfully violated

Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, which prohibit, in connection with the purchase or sale of securities, the use of any manipulative or deceptive device, including any device, scheme or artifice to defraud; making any untrue statement of material fact or omitting to state a material fact when doing so makes the statement made misleading; or engaging in any act, practice or course of business which operates or would operate as a fraud. World Markets engaged in a fraudulent scheme by using multiple deceptive devices to facilitate its customers’ market timing and late trading of mutual funds. More specifically, after mutual funds blocked customers’ market timing trading, World Markets’ RRs created new accounts for their customers, created new RR numbers, and used platforms at other broker-dealers to deceive mutual funds about the source of their customers’ market timing trading, and the activities of its customers. World Markets also took numerous trades from one market timing customer after 4:00 pm EST, and then submitted those orders as though the customer had placed the order prior to 4:00 p.m. ET., thereby ensuring

those trades received that day’s NAV. In doing so, World Markets harmed the mutual funds and their remaining shareholders by diluting the mutual funds’ next day NAV.

52.

As a result of the conduct described above, World Markets willfully violated

Section 15(c) of the Exchange Act and Rule 10b-3 thereunder, which prohibit broker-dealers from effecting transactions in, or inducing or attempting to induce, the purchase or sale of securities (other than on a national securities exchange of which it was a member) by means of a manipulative, deceptive, or other fraudulent device or contrivance. World Markets effectuated transactions in the purchase or sale of securities using fraudulent devices to hide its customers’ market timing and late trading of mutual funds in funds with which it had Dealer Agreements. More specifically, after mutual funds blocked customers’ market timing trading, World Markets’ RRs created new accounts for their customers, created new RR numbers, and used platforms at other broker-dealers to deceive mutual funds about the source of their customers’ market timing trading, and the activities of its customers. World Markets also took numerous trades from one market timing customer after 4:00 pm EST, and then submitted those orders as though the customer had placed the order prior to 4:00 p.m. EST., thereby ensuring those trades received that

day’s NAV. In doing so, World Markets harmed the mutual funds and their remaining shareholders by diluting the mutual funds’ next day NAV.

53.

As a result of the conduct described above, World Markets willfully violated Rule

22c-1, as adopted under Section 22(c) of the Investment Company Act, which requires certain

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