Tainted fund shop Janus Capital Group on Friday named a new executive to head its institutional sales team.

John Zimmerman , 41, has assumed the responsibilities previously held by Lars Soderberg, who recently agreed to take a leave of absence.

The Denver firm said in April that it was evaluating Soderberg's role in light of an ongoing probe into mutual fund trading practices.

Janus has since agreed a $226 million settlement that includes fee reductions to settle allegations that it allowed favored clients such as hedge fund Canary Capital to market time its funds in exchange for sticky assets.

Soderberg is executive vice president of institutional services, while Zimmerman, former executive at Banc of America Capital Management, will take on the new post of senior vice president of institutional services.

The company maintains that Zimmerman is not a replacement for Soderberg, who has been responsible for overseeing sales to big institutions such as pension funds, insurers and 401(k) retirement plans. Zimmerman will also handle money market funds, the company said.

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