Fremont Acknowledges SEC Probe

In a filing with the Securities and Exchange Commission on Friday, Fremont Investment Advisors said it uncovered past market-timing deals in several of its funds, and acknowledged that it's under investigation by the SEC for trading activities.

Some six weeks ago, Fremont quietly acknowledged that its own internal investigation identified the prior existence of market-timing arrangements "with a few clients that may have been inconsistent with" the policies of Fremont Investment Advisors and the funds themselves, according to a statement posted on the Web site.

The last such arrangement was terminated more than one year ago, according to the statement. Overall, "such trading activity resulted in a net loss" for the alleged market timers, the company said. But for those funds that suffered as a result of such arrangements, Fremont has pledged full restitution. ...