Reuters reports in its statement that the SEC named former portfolio manager, Warren Lammert, former institutional sales manager, Lance Newcomb and former executive vice president of institutional services, Lars Soderberg, of having been involved in frequent trading arrangements that were “contrary to the prospectuses governing the funds in which frequent trading was permitted.”
The SEC also claimed Newcomb entered into an agreement with at least one investor who was allowed to frequently trade a particular Janus fund in return for a long-term investment with the company, according to Reuters.
An administrative judge will determine the guilt of the former executives as well as any penalties that may be levied.
In 2004, Janus reached an agreement with the SEC and the attorneys general of New York and Colorado to pay $226 million to settle civil fraud charges that the firm improperly allowed market timing (See Feds ID Biggest Janus Market Timer Contact).
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