The Securities and Exchange Commission on Monday charged three former Janus Capital executives with violating federal securities laws and prospectus provisions by allowing or facilitating improper frequent trading arrangements. The three are Warren Lammert, who was the portfolio manager of the Janus Mercury Fund; Lars Soderberg, who was former executive vice president; and Lance Newcomb, former sales director.
The SEC further alleges that Newcomb entered into an improper arrangement with at least one investor whereby the investor was allowed to frequently trade in one fund in return for making a long-term investment in another fund.
Newcomb told Bloomberg News he "categorically" denied any and all of the charged. "I did not organize, negotiate or approve any type of market-timing arrangements at Janus." Lammert and Soderberg were not immediately available for comment.
A Janus spokeswoman said the case was "a legal matter between the SEC and former employees."
The SEC said it is seeking a cease-and-desist order, remedial sanctions and civil money penalties against the three. The case will be scheduled to be heard before an administrative law judge.