Not only did Alliance Capital employees send e-mails mentioning the market timing practices of one of its largest clients, but Vice Chairman Roger Hertog was included in the correspondence, The Wall Street Journal reports.

Further, one of the e-mails reportedly implied that Alliance Chairman Bruce Calvert also knew about the market timing of Daniel Calugar, a Las Vegas broker, in several Alliance funds.

Alliance, which has already fired President/CEO John Carifa and mutual fund head Michael Laughlin, would not comment on the allegations. Amid the scandal, during which the company has already set almost $200 million aside to take care of costs relevant to the investigation, Alliance has been given a "consider selling." recommendation by Morningstar.

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