Former AIM Execs Settle Charges of Market Timing
July 25, 2005
A pair of high-ranking mutual fund executives have settled allegations that they permitted market timing and will pay a total of $225,000 in civil penalties.
According to the Securities and Exchange Commission, former AIM Distributors President and CEO Michael Cemo and former AIM Advisors Chief Investment Officer Edgar Larsen allegedly authorized 10 market-timing arrangements in which favored investors rapidly traded in and out of AIM Funds portfolios.
Cemo will pay a $125,000 penalty and serve a nine-month suspension from the industry. Larsen will pay $100,000 and agreed to a six-month suspension.
A little more than two months ago, Amvescap, which owns AIM Advisors and Invesco Funds, coughed up a $450 million settlement to the SEC over market-timing charges against the companies.
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