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.

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