Just four days after settling with New York Attorney General Eliot Spitzer and the Securities and Exchange Commission on charges of improper trading, FleetBoston mutual fund arm Columbia Management Group said Friday that three of its top executives "will not be returning" to the office, Reuters reports.
The executives, Chief Operating Officer Joseph Palombo and co-presidents James Tambone and Lou Tasiopoulos, joined five other Columbia Management workers on the unemployment line as a result of the company's participation in the scandal, which involved allowing certain customers to conduct improper market timing trades. Previously, all three men had been placed on administrative leave.
Monday, the company had announced the $140 million settlement with Spitzer and the SEC as well as an $80 million slash of fund fees over the next five years. Adding in the settlement amount of Fleet's new partner, Bank of America, the total of both firms' fines and restitutions was $765 million.
Columbia's new "interim head of mutual funds," or acting replacement for Palombo, will be Kevin Connaughton. Replacing Tambone and Tasiopoulos will be Don Froude.