Kevin Parke, president of Massachusetts Financial Services, may be suspended by the Securities and Exchange Commission, according to people familiar with an investigation into the fund company's practices.

The company has stated that the illegal and improper trades that went through its office were not signed off or directed by any of its top executives.

Parke, 44, has worked at MFS since he was 25, when he joined as an analyst. He was named president in 2002, and also served as the chief investment officer for MFS, the mutual fund unit of Sun Life Financial Inc.

These reports come on the heels of an announcement of a $159 million (U.S.) shortfall for Sun Life, the Canadian firm that has been engulfed by the SEC’s and New York Attorney General Eliot Spitzer's probe into market timing and late trading at mutual funds.

Fiduciary duty violation charges will be filed against MFS, the company has announced. In bracing for the costs the probe against it may generate, MFS allotted $211 million (Canadian) for court costs and fee redemptions. News outlets have reported that MFS has tentatively settled to pay $225 million in penalties and $125 million in fee cuts.

MFS Chief Executive John W. Ballen is also said to be a target of an SEC suspension, which typically last a few months.

A spokesperson for MFS said that information about the possible suspensions is confidential, and he would not comment about either Ballen or Parke.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.