Securities regulators have imposed a record $2.25 million fine on the chairman and CEO of hedge fund James River Capital Corp. for allegedly using deceptive practices in trading in the long-term investments known as variable annuities.

The National Association of Securities Dealers, the brokerage industry’s self-policing organization, on Wednesday announced the civil penalty against Paul Saunders, a broker who is the chairman, CEO and majority owner of Richmond, Va.-based James River. Saunders neither admitted nor denied the NASD’s allegations in agreeing to the settlement, under which he also will be suspended for 60 days from working as a broker.