The head of mutual funds for Bank One, one of four mutual fund companies named in New York State Attorney General Eliot Spitzers Sept. 3 fund trading complaint, has lost its head of mutual funds, Reuters reports.
Mark Beeson, head of the firms fund division, resigned Wednesday, as the bank looks into whether it allowed market timing and/or late trading in its funds. John AbuNassar, who ran the banks institutional asset management division, also has left.
David Kundert, who was in charge of investment management, is now running the funds, while Managing Director Norm Cook has replaced AbuNassar.
In an internal Bank One memo that Reuters obtained, Chief Executive Officer Jamie Dimon said that for 11 months ended in May, hedge fund Canary Capital Partners, also named in Spitzers suit, was allowed to trade 11 of the banks mutual funds more frequently than other customers. Although Canarys share of assets averaged 0.5% and never topped 1%, Dimon said the practice should never have happened.
More than 20 people have now either been fired or have resigned as a result of Spitzers probe.