Van Eck and two unnamed senior officers may become the next bulls-eye in the SECs attack on the technically legal but widely controversial practice of rapid, in-and-out trading, which abets those permitted to do it but harms long-term investors in funds, CBS MarketWatch reports.
The news is far from surprising, since the firm has a lot of international funds that trade in different time zones. As the latest in a long list of high-profile companies named in the scandal, including the since troubled Putnam and Janus, the announcement by Van Eck represents another step down in what seems to be a never-ending stairwell of charges.
"Its been more widespread than I think most folks would have imagined," said Morningstars director of fund analysis, Kunal Kapoor, in an interview with CBS MarketWatch.
Industry expert Geoff Bobroff said that while any settlement with the SEC would help Van Eck investors, the average fund investor will only see "pennies or a few dollars" tacked back onto their accounts.