As it admitted Wednesday that an internal investigation had found improper trading within the company – both market timing and late trading – Federated Investors further disclosed that it has been subpoenaed by New York Attorney General Eliot Spitzer as part of his mutual fund probe, Reuters reports.

"It appears that a few investors in Federated funds were granted exceptions to the company’s internal procedures for limited frequent transactions, and that some of these investors made additional investments in other Federated funds," said the company in a statement.

Besides Spitzer’s subpoena, a request from the Securities and Exchange Commission for information has also been received by Pittsburgh-based Federated, which holds about $194 billion in assets.

Federated said that although its internal investigation headed up by the law firm Reed Smith LLP did turn up some evidence of late trading, it was too soon to tell just how much improper trading took place.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.