Denver Post – The U.S. Securities and Exchange Commission on Monday accused three former Janus Capital Group executives of allowing market-timing transactions, or prohibited rapid trades in and outof mutual funds.
The SEC alleges that Warren Lammert, former manager of the Janus Mercury Fund; Lars Soderberg, a former executive vice president responsible for sales and product development; and Lance Newcomb, a former regional sales director, violated federal securities rules by allowing brokerage customers to make frequent trades in Janus mutual funds.
The SEC has requested that the three, who are no longer employed at Denver-based Janus, appear before an administrative law judge and is seeking undisclosed fines.
The Janus Mercury Fund, like other Janus funds, limited investors to four exchanges per year, warning them frequent trades could disrupt investment strategy and raise expenses for all investors.
Back in November 2001, the SEC alleges, Lammert entered into an arrangement with brokerage firm Trautman Wasserman to allow more-frequent trades in the Mercury Fund.
