After realizing that disappointed informants most notably Peter Scannell, the phone representative in the
But the SECs acknowledgement that it bungled its handling of Scannell comes a little late, as New York State Attorney General Eliot Spitzer continues to blast the nations top regulator. "Heads should roll at the SEC," Spitzer announced yesterday. "There is a whole division at the SEC that is supposed to be looking at mutual funds. Where have they been?"
The investigation into the fund industry, so far, has been based largely on tips from individuals. But the SECs Boston office apparently mishandled information from an informant, forcing him to turn to Massachusetts authorities.
Scannell, who was also
"Were looking into this matter," SEC Deputy Director of Enforcement Linda Thomsen told Reuters. "Were going to figure out what happened."
When New York State Attorney General Eliot Spitzer nailed hedge fund giant Canary Capital last month for market timing, much of his information came from three industry informants. Said Thomsen of the SECs usual procedures: "With respect to complaints and tips generally, we take them very seriously. They are very important and we are looking
at our procedures for handling those."