MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, August 1, 2006 SEC Targets Three ex-Janus Execs Warren Lammert, former skipper for the Janus Mercury Fund, was one of three former Janus executives targeted by the SEC Monday for what it alleges were improper agreements with fund market timers. Also named in the complaint were Lars Soderberg, a former executive vice president and managing director for Janus Institutional Services, resigned from the firm in July of 2004 after being placed on leave, and Lance Newcomb, an institutional sales executive. Lammert was one of the highest profile portfolio managers during the boom and bust of the late 1990s and early 2000s. He left the Denver fund firm in February 2003 and was replaced by David Corkins. Soderberg led Janus' distribution efforts for its investment-only efforts in the defined contribution markets before his resignation. He was replaced by John Zimmerman at the time of his resignation. In its complaint, the SEC's Division of Enforcement alleges that the three "violated certain provisions of the federal securities laws by allowing or facilitating improper undisclosed frequent trading arrangements at Janus Capital Management" and that the frequent trading arrangements "were contrary to the prospectuses governing the funds in which frequent trading was permitted." The complaint also alleges that Newcomb entered into an improper arrangement with at least one investor whereby the investor was allowed to frequently trade a JCM fund in return for making a long term investment in another JCM fund. The SEC is seeking a cease-and-desist order, remedial sanctions, and civil money penalties. A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the order have merit. Printed from: MFWire.com/story.asp?s=12388 Copyright 2006, InvestmentWires, Inc. All Rights Reserved |