Updated from 9:02 a.m. EDTJanus Capital ( JNS) and J.B. Oxford ( JBOH), two financial services firms mired in the mutual fund trading scandal, announced big management shake-ups on Tuesday. At Janus, Mark Whiston is stepping down as chief executive of the mutual fund company and also is relinquishing his seat on the firm's board of directors. He will be succeeded by Steve Scheid, who will continue on as the firm's chairman. In a press release announcing Whiston's resignation, Janus made no mention of the mutual fund trading scandal. But Whiston's resignation comes as the mutual fund firm is close to reaching a settlement with securities regulators over its role in the trading scandal that has tarred much of the $7.6 trillion industry, according to sources. Janus was one of the first mutual fund companies to come under regulatory scrutiny. In court papers filed last September by New York Attorney General Eliot Spitzer, Janus was one of several mutual fund companies that allegedly allowed the Canary Capital Partners hedge fund to engage in abusive trading. The trading scandal has cost top executives at other mutual fund companies their jobs, and there had been much speculation that Whiston ultimately would be forced to step down. Whiston will continue on as a consultant at Janus until the end of the year. "As we look to the future, Mark and the board concluded that it makes sense for new leaders to shape Janus' future," says Janus spokesman Blair Johnson. Cutting ties with Whiston won't come cheap to Janus. The firm says it expects to take a $17 million charge, or 4 cents a share, in the second quarter to cover the cost of severance and deferred compensation that is owed Whiston. The charge also includes a $5.8 million cash payment to Whiston. Earlier, the firm set aside $31 million to cover investor losses due to market timing activity in some of its funds. Market timing, or frequent trading, can erode the value of a funds' assets. Meanwhile, the president and chief operating officer of J.B. Oxford resigned last week, just three days after the Los Angeles-based brokerage received a second notification from securities regulators that it is likely to face an enforcement action over its role in the mutual fund trading scandal. The firm disclosed the April 15 resignation of James Lewis in a regulatory filing early Tuesday. The filing offered no explanation for the move. Lewis also resigned from the board of directors of J.B. Oxford, which is mainly known for its online brokerage service.