In the Matter of Ronald V. Speaker
Securities and Exchange Commission
Investment Company Act Release No. 22461 (1997)
Facts
Ronald Speaker, an employee of Janus Capital Corporation (Janus), was an executive vice president and the portfolio manager of a mutual fund advised by Janus (the fund). Speaker was contacted by a sales representative for a broker-dealer who offered the opportunity to purchase a company’s debentures at a certain price, but Speaker declined the offer on behalf of the fund. Later that day, Speaker became aware of a bid for the debentures at a higher price, which presented the chance to make a quick profit by purchasing the debentures from the broker-dealer and immediately selling them in the open market. Rather than allowing the fund to take advantage of this opportunity, Speaker took the opportunity for himself, realizing a profit of $16,000 from personally purchasing $10 million of the debentures and selling them that same day. He did so without prior disclosure to the fund or obtaining the fund’s consent or waiver of the opportunity. The Securities and Exchange Commission (SEC) brought an administrative proceeding against Speaker for violations of the Investment Advisers Act of 1940 (Advisers Act), the Investment Company Act of 1940 (Company Act), and the Securities Exchange Act of 1934 (Exchange Act).
Rule of Law
Issue
Holding and Reasoning ()
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