A Mutual Fund's Respected Founders Forced Out

In the opinion of New York State attorney general Eliot Spitzer, Pilgrim Baxter & Associates can claim the title of Most Egregiously Corrupt among the growing list of mutual funds under investigation. "Here you had the founders themselves manipulating the system," Spitzer told TIME. "There's an extra level of insidiousness to it." Complaints filed last week by Spitzer and the Securities and Exchange Commission charged Gary Pilgrim and Harold Baxter with civil fraud. They are accused of allowing an outside hedge fund (in which Pilgrim held a major stake) to make rapid trades in Pilgrim Baxter funds, a practice forbidden by...

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