The Securities and Exchange Commission said that while still an employee, Warren Lammert, who left Janus Capital Group in March 2003, brought a hedge fund into the companys mutual fund pool and allowed it to time the market, The Wall Street Journal reports.
The Commissions charges came in settlement papers filed Wednesday, and, although Lammert and another Janus executive former CEO Mark Whiston were not named, sources say those are the two being held responsible.
Lammert worked for the company for 16 years and managed the Janus Mercury Fund and apparently allowed the hedge-fund firm Trautman Wasserman & Co. into the fund. Later, Trautman became the No. 1 market timer in the fund. Lawyers representing Lammert would not return the Journals calls, and Whistons attorney did not comment on the story.
As has become protocol with many mutual fund managers, Lammert is currently a portfolio manager with Boston-based hedge fund Granite Point Capital, which he founded.