New York State Attorney General Eliot Spitzer mocked the fund industry’s "claim of purity," along with Congress and the Securities and Exchange Commission’s failure to detect the improper trading he has uncovered, the New York Post reports.

"Where have the SEC and Congress been? They have permitted the mutual fund industry to get away with its claim of purity," Spitzer told the Post. "The claims of purity were just one more manifestation of the industry’s arrogance."

And again, he indicated that his investigation is likely to implicate a number of firms, saying: "We have simply tapped the window, and the whole thing shattered." Spitzer has earlier stated he expects some fund executives will serve jail time.

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