Heads Roll at Alliance Capital
Scandal claims jobs of chief operating officer and head of mutual fund sales.
The mutual fund trading scandal sent two more heads rolling on Monday. Alliance Capital Management (AC), which may face civil charges for allowing market-timing in its funds, said the firm's president and chief operating officer, John D. Carifa, and the chairman of its mutual fund distribution unit, Michael J. Laughlin, have resigned.
Alliance's board of directors asked Carifa and Laughlin to resign because they oversaw the firm's "mutual fund unit which, as previously reported, allowed inappropriate market timing transactions, some of which had an adverse impact on mutual fund shareholders," said the firm's chief executive officer Lewis A. Sanders.