Two New York-based hedge funds and a couple of their principals have been accused with engaging in improper market-timing of trades, charges usually reserved for mutual funds acting on behalf of hedge funds. Filed in New York State Supreme Court, a trial level court, New York Attorney General and Governor-Elect Eliot Spitzer charged Samaritan Asset Management Services and Johnson Capital Management, along with respective principals at the hedge funds, Edward Owens and Michael Johnson. According to the complaint, Samaritan and Johnson Capital attempted to conceal their market timing activity by trying to “piggyback” on trades completed by Security Trust Company of Arizona on behalf of their retirement-plan clients. Two top STC executives reportedly already have pleaded guilty to illegal late-trading in mutual funds as well as market-timing schemes by hedge funds, allegedly including Samaritan. Spitzer is asking to court to force the hedge funds to cease and desist from conducting improper trades and to pay restitution. Attorneys for the two hedge funds did not comment on the charges.