John Falvey, a partner at
MFS reportedly allowed certain clients, particularly hedge funds, to market time 11 of its funds, sources said. The firm is currently negotiating a settlement with the SEC, the New York attorney general and New Hampshire regulators.
Also, the company earlier this month replaced MFS Chairman Jeffrey Shames as the chairman of the funds board, replacing him with Atwood Ives and Ward Smith as co-chairmen.
Falvey and MFS spokesman John Reilly both declined further comment yesterday.