The SEC charged former Janus Capital Group executives Warren Lammert, Lars Soderberg and Lance Newcomb with improper market timing and mutual fund trading. The three "violated certain provisions of the federal securities laws by allowing or facilitating improper undisclosed frequent trading arrangements at Janus," the SEC's enforcement division said in a statement.
The SEC is seeking unspecified fines from the former Janus executives, according to the statement. Their cases will be scheduled for a hearing before an administrative law judge.
Mr. Newcomb, who was assistant vice president and regional sales director for Janus between 1998 and 2003, "categorically" denied the charges. "I did not originate, approve or negotiate the market-timing arrangements at Janus," he said in an interview today. "I look forward to setting the record straight."
Mr. Lammert, who was portfolio manager for the Janus Mercury Fund from 1993 until he left the firm in March 2003, did not return a call placed to him at his current employer, Granite Point Capital Management. Efforts to reach Mr. Soderberg also were unsuccessful.
Shelley Peterson, spokeswoman at Janus, declined to comment on the recent charges, noting the matter is between the SEC and the three men. Janus paid $225 million in penalties to the SEC to settle allegations related to market timing. "Janus settled its issues with regulators two years ago and is focused on continuing to move forward and deliver strong performance," Ms. Peterson said.