DENVER (AP) — The chief executive of Janus Capital Group resigned yesterday, becoming the latest figure to be brought down by accusations of improper trading practices in the mutual fund industry.
Janus spokeswoman Shelley Peterson said that regulators did not ask for Mark Whiston’s resignation and that it was unrelated to any proposed settlements.
Mr. Whiston, 42, was replaced by Chairman Steve Scheid.
“Mark and the board concluded it would be in the best interest of our fund shareholders, stockholders and employees for new leaders to shape Janus in the months and years ahead,” said Mr. Scheid, 50.
Janus was accused by the Securities and Exchange Commission and state regulators in New York and Colorado of engaging in market-timing — a type of rapid, in-and-out trading that can skim profits from long-term fund shareholders.
The practice is not illegal, but Janus policies discouraged it. Regulators say for that reason, allowing it constituted securities fraud. Mr. Whitson was in charge at Janus during the time when officials say improper trading occurred.
Janus has said it will return to shareholders $31.5 million gained from market-timing. A number of Janus employees have resigned since the investigations began.
Please read our comment policy before commenting.