NASD, the US regulator, said it has imposed its largest fine to date against an individual on Paul Saunders, chief executive of hedge fund manager James River Capital, ordering him to pay $2.25m (€1.8m) for "unethical" practices.

NASD said the fine was for using deceptive practices to market time through variable annuities, from which Saunders had made illicit profits of $750,000. NASD also suspended Saunders for 60 days. Its investigation into brokers who assisted Saunders is continuing, it said.