Mutual Funds: A Scandal Grows

New York State attorney general Eliot Spitzer has more up his sleeve in his ongoing campaign against improprieties in the mutual-fund industry. He trotted out his latest target last week: Richard Strong, chairman of Strong Financial Corp., one of the nation's largest fund firms. Strong is accused of violating securities laws by engaging in short-term trading in his firm's funds, a practice the company prohibits. (Strong said he would resign if appropriate and would personally reimburse any investors who lost money because of his trading.) In a separate move, Putnam Investments became the first firm to be charged in the industry-wide...

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