New York Attorney General Eliot Spitzer’s ongoing settlement talks with Janus Capital Group may result in the dismissal of the firm’s chief executive officer, Mark Whiston, CBS MarketWatch reports.

An internal Janus memo dated Nov. 12, 2002 obtained by the news organization indicates Whiston may have known about market timing long before the company became mired up in the fund scandal. The memo, reportedly written by Chief Marketing Officer Robin Beery, says Whiston conducted a study of market timing trades and presented its results. While there is no evidence that Whiston endorsed market timing, a source told CBS MarketWatch that his inaction amid the improper trades may lead to his dismissal.

Jane Ingalls, a Janus spokesperson, told CBS MarketWatch the study was done to "assess better ways to deter potential market timers." She said it actually led to "redemption fees on many of our international funds." About $20 million to $40 million of market timing took place on slow days, the memo said, while $300 million to $400 million took place on "days of big movement in the market."

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