As the news broke yesterday that New York Attorney General Eliot Spitzer might press charges against them, Harold Baxter, chairman and chief executive officer of Pilgrim Baxter & Associates, and Gary Pilgrim, co-founder, quit their positions yesterday. An internal probe into investments by one of the two, also prompted their forced resignations.

The pair started their $7.4 billion company, now owned by Old Mutual, in 1974. Scott Powers, CEO of Old Mutual Asset Management, has replaced Baxter as chairman.

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