Colin Barr

Following the money in banking, economics, and Washington

Insider trading probe touches Janus

November 23, 2010: 3:02 PM ET

The government's insider trading probe is reaching into the mutual fund industry.

Janus Capital (JNS), the Denver-based mutual fund firm that rode the tech bubble to boom and bust fame, said Tuesday it has been asked for information. Janus is the first publicly traded company to acknowledge getting a request in the inquiry, which grabbed headlines this week when the FBI raided three Connecticut hedge funds.

Janus said in a filing with the Securities and Exchange Commission Tuesday that it's cooperating with the requests and that it doesn't plan to say anything else if it has anything to do with it.

Janus Capital Group Inc. ("Janus") has received an inquiry regarding the recently disclosed insider trading investigation on Wall Street calling for general information and intends to cooperate fully with that inquiry.  Janus does not intend to provide any further updates concerning this matter unless and until required by applicable law.

The Janus filing comes as the media is bubbling with reports of other subpoenas in the case, which was first reported over the weekend. Among those reportedly receiving subpoenas is SAC Capital, a Greenwich-based $12 billion fund run by hedge fund legend Steven Cohen.

The hedge funds raided Monday were headed by former SAC traders, provoking speculation that the firm – regarded as among the best connected in the hedge fund world – is in investigators' cross hairs.

But the probe continues to fan out across the investment world, with the closely held, Boston-based mutual fund firm Wellington reportedly receiving subpoenas as well.

Update 4:18 p.m.: Earlier I wrote MFS had reportedly received a subpoena. That's not the case. The firm calls to say it hasn't received any requests for information and says it will advise if that changes. My apologies for the error.

Janus shares were halted for release of the news Tuesday afternoon. They were off 3% at $10.66 after trading resumed.

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About This Author
Colin Barr
Colin Barr
Senior Writer, Fortune

Colin Barr has covered finance for Fortune.com since November 2007. Previously he was a writer and editor for TheStreet.com, winning a 2006 Society of American Business Editors and Writers award for "The Five Dumbest Things on Wall Street," and for Dow Jones Newswires. He is a 1991 graduate of Penn State and lives in Port Washington, N.Y., with his wife Meena Bose and their two kids.

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