John D. Carifa, president, chief operating officer and director of Alliance Capital, was forced to resign by the companys board of directors Monday because of market timing practices that occurred on his watch. Also resigning was Michael J. Laughlin, the firms mutual fund distribution unit chairman.
Other fund scandal news this morning concerns Strong Capital chairman Richard Strong. He may be criminally charged for self-dealing, The Wall Street Journal reports. This could be a terrible blow to the company, since Strong owns 90% of it.