Mutual fund manager J. & W. Seligman & Co is the latest firm to cop to abusive trading practices as the company admitted to having four market-timing arrangements in place in the last three years.
In a filing with the Securities and Exchange Commission, the New York-based fund shop said an internal review of its operations revealed three market-timing arrangements that were terminated before the end of September 2002 and one that was in the process of being shut down when New York Attorney General Eliot Spitzer launched his full-scale investigation.
Seligman said it believes the impact of the arrangements on its funds was minimal and that it did not engage in any illegal late trading. One employee has left the company in connection with the internal probe. The employees name was not disclosed.