Denver-based Janus Capital Group (NYSE: JNS) today stated, according to wire reports, that an internal review showed some employees engaged in frequent-trading activities, while the head of its international group resigned.
Janus was one of four companies named in connection with New York Attorney General Eliot Spitzer’s $40 million settlement in September with Canary Capital, which allegedly engaged in frequent-trading activities (also known as market timing) to the detriment of long-term holders of mutual fund shares.
Janus Chief Executive Mark Whiston released a statement indicating that all Janus employees central to the decision to allow improper trading within its funds are gone from the firm’s ranks.
Janus today also confirmed the resignation of Richard Garland, CEO of Janus International. He will be replaced by Erich Gerth, vice president and national sales director of Janus Global Advisers.
Garland’s departure was not unexpected, according to wire reports, after his e-mails were brought into question during the attorney general’s investigation. An e-mail exchange between Garland and an unidentified Janus employee showed Garland had approved additional frequent-trading capacity in April for a possible $50 million deal. The deal was never completed.
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