This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Janus Sets $31.5 Million Repayment to Investors

Janus (JNS) said it would make $31.5 million in "restoration" payments to holders of the mutual funds in which the firm allowed improper trading, while rolling out several other initiatives to prevent future abusive trading.

Janus also said it appointed independent director and former Charles Schwab (SCH) vice chairman Steve Scheid as chairman of Janus, effective Jan. 1. Previously, Janus CEO Mark Whiston was to succeed Landon Rowland as chairman.

Friday's announcement follows Janus' promise to "make whole" all investors who lost money because of its 12 "discretionary arrangements" with market-timers, and it continues Janus' push to restore investor confidence in the wake of the widening industry scandal. On Sept. 3, Janus was one of four fund firms named in New York Attorney General Eliot Spitzer's $40 million settlement with hedge fund Canary Capital Partners over Canary's improper arrangements with the firms.

The restoration payment is likely to be the first of Janus' payouts to resolve the abusive trading scandal. The fund family is embroiled in investigations by New York and Colorado's top securities regulators as well as the Securities and Exchange Commission. Janus said Friday that it is in talks with regulators to settle the charges, and that it expects the settlement would involve remedial actions as well as more monetary penalties.

"Today's announcement marks an important step in regaining the trust of our fund shareholders," said Janus CEO Mark Whiston. "Although there is still much work to be done, particularly with respect to resolving these matters with the regulators, the fund trustees and JCG's management team are working very hard to protect fund shareholders and deliver strong investment performance."

In the initial days after the Spitzer bombshell, the Denver-based fund shop partially defended its role in the abusive trading scandal as an industrywide situation, and that drew some criticism. More recently, Janus focused less on defending its actions and making a strong push to restore investor confidence. The push ranged from tangible measures such as increasing redemption fees and ending soft-dollar arrangements to such charm-offensive measures as posting testimonials from its fund managers on its Web site.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,257.95 +101.10 0.59%
S&P 500 2,009.20 +7.63 0.38%
NASDAQ 4,589.0990 +26.91 0.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs