NEW YORK (HedgeWorld.com)–Fred Alger Management Inc. hired Katherine P. Feld to head compliance at the firm, which was identified last year as a participant in the mutual fund trading scandal.
Ms. Feld, whose titles will be chief compliance officer, senior vice president and counsel, will be responsible for improving compliance following revelations last year that the firm was involved heavily in mutual fund timing.
In October, Fred Alger’s vice chairman, James P. Connelly, was arrested, convicted and barred from the industry for his actions related to mutual fund market timing . He was sentenced to three years in prison. The related complaint from New York State Attorney General Eliot Spitzer and the Securities and Exchange Commission noted that Fred Alger’s timing program peaked last year with 12 companies timing mutual fund trades in a process that began in the mid 1990s. Fred Alger cooperated with the investigation.
In a statement, Ms. Feld said: “My mandate is to set high standards, centralize existing procedures and ensure that the firm adheres to industry best practices. I have the full support of the board and senior management at Fred Alger for our compliance program, which includes zero tolerance for unethical business practices.”