The two executives were not named, according to MarketWatch. The executives have already been sanctioned by the company after investigations were made into their actions, according to the company (See Federated Concludes Internal Fund Trading Review ).
Federated Investors is itself knee-deep in the ongoing mutual fund trading scandal, which started in September 2003 with investigations by New York Attorney General Eliot Spitzer into practices of late trading and market timing at multiple mutual funds (See Federated Confesses 15 Late Trades ). The company is in discussions currently to settle allegations of abuses, according to the firm.
In February of last year, Federated announced a $7.6 million fund to reimburse customers who had lost money due to the improper practices.