New York State Attorney General Eliot Spitzer today announced criminal charges against a Bank of America broker for his role in a scheme involving unlawful trading of mutual funds. At the same time, the Securities and Exchange Commission also brought federal civil charges.

The broker, Theodore Sihpol, of New Canaan, Conn., surrendered to police in connection with Spitzer’s filing of a two-count complaint charging him with larceny and securities fraud. Both are felony charges.

Sihpol was a broker responsible for executing trades of BOA’s funds for hedge fund, Canary Capital Partners LLC. Canary was named in a civil complaint filed by Spitzer’s office on September 3 detailing illegal trading in the mutual fund industry.

The allegations involve “late trading,” which is prohibited by New York law and SEC regulations because it allows a favored investor to take advantage of post-market-closing events not reflected in the share price set at the close of the market.

None of the allegations have been proven. However, if convicted of grand larceny, Sihpol would face a mandatory term in state prison.

The SEC also filed a related civil enforcement action. It issued an administrative order instituting proceedings alleging that Sihpol played a key role in enabling certain hedge fund customers of BOA to engage in late trading in shares of mutual funds offered by Bank of America.

The SEC is seeking civil penalties, disgorgement and other relief, which may include permanently barring Sihpol from the securities industry.