Mutuals.com announced on Tuesday that it reshuffled its fund manager lineup last week amid allegations that two of its managers engaged in late trading.

The Dallas-based investment company said CEO Richard Sapio and President Eric McDonald stepped down as managers of the company’s four Generation Wave funds. The company explained that the reshuffling was "strictly an administrative move" and that the two executives were never really actively involved in managing the portfolios. Dan Ahrens will stay on as the lead portfolio manager for those funds.

In December, the SEC filed charges against the firm for allegedly defrauding hundreds of mutual funds and their shareholders by engaging in late trading and market timing schemes. Sapio and McDonald were named in the complaint along with the company’s compliance chief Michele Leftwich.

The company said that regulators have not alleged any illegal activity within its proprietary mutual funds, which include the Generation Wave funds and the Vice Fund. In a letter to customers posted on its Web site, Mutuals.com said it continues to keep an active dialogue with the regulators but intends to "contest vigorously" the claims made by the SEC.

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