Janus Shells Out $18 Million, on SEC Orders
Financial
Janus Capital Management, an investment advisor to Janus Mutual Funds, reimbursed $18 million to more than 325,000 defrauded shareholders late last week as a first step in paying back more than $100 million, as ordered by the Securities and Exchange Commission.
In August of 2004, the SEC found that Janus Capital entered into market timing agreements with 12 entities, and failed to notify its shareholders. Market timing is a strategy where investors buy and sell frequently to try and profit from short-term market cycles.
The agreements permitted the 12 entities to perform more than the commonly allowed four transactions per year, without paying redemption fees. Since waiving these fees imposes the administrative and transaction costs of frequent trading on all the shareholders, Janus Capital had a conflict of interests with Janus Mutual Funds which it failed to disclose to the Board of Trustees.
The SEC censured Janus Capital and ordered it to pay $50 million dollars in disgorgement and $50 million in civil penalties, in addition to interest earned on the money since 2004, totaling more than $100 million.
Shareholders are to be reimbursed for their share of losses due to market timing, and for their share of advisory fees paid by funds that suffered losses during the period of the market timing. To distribute the money to the shareholders in the five affected mutual funds, Janus Capital hired Christopher M. James, an independent distribution consultant.
After a lengthy process of planning and discussion, James started the distribution process that will continue over the coming months.
Related listings
-
Alleged white supremacist pleads guilty in fire at Tennessee center
Financial 04/11/2026A man linked to white supremacist movements pleaded guilty on Monday to setting a fire that destroyed an office at a historic social justice center in Tennessee, a court document shows.Regan Prater also pleaded guilty to attempting to aid a foreign t...
-
Tax reform may grow donor base but shrink overall nonprofit contributions
Financial 03/17/2026Millions more Americans will likely donate to nonprofits following changes in tax laws passed by Congress last summer, but those changes will also likely reduce the overall amount of money given to charity, according to new research.The report from t...
-
Russian court challenges International Olympic Committee
Financial 11/27/2018Court ruled Wednesday that bobsledder Alexander Zubkov, who carried the Russian flag at the opening ceremony of the 2014 Sochi Games, should still be considered an Olympic champion despite having been stripped of his medals because of doping. A CAS r...
Grounds for Divorce in Ohio - Sylkatis Law, LLC
A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party
Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party
However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.