Deals & People April 9, 2013

Janus Names Equities CIO

Enrique Chang was named chief investment officer (CIO) of equities and asset allocation at Janus Capital Group Inc.
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Chang will oversee Janus’ equity, risk management and alternatives teams, and will partner with Janus leadership to develop multi-strategy portfolio solutions. He will assume management of the equity investment team and focus solely on portfolio management. Chang will report to Janus CEO Richard Weil.

For the last six years, Chang was CIO and executive vice president at American Century Investments and a member of the American Century Companie Inc. board of directors. He joined American Century in 2006 and was named CIO in January 2007. Chang was responsible for a team of more than 150 investment professionals including portfolio managers, analysts and traders across all investment sectors. He led the company’s asset allocation committee and investment management senior leadership team. Previously, Chang was president and CIO for Munder Capital Management. He also held senior investment management positions at Vantage Global Advisors, J&W Seligman and Co., and General Reinsurance Corporation.

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He holds a bachelor’s degree in mathematics from Fairleigh Dickinson University, and master’s degrees in finance/quantitative analysis, statistics and operations research from New York University.

Compliance April 9, 2013

SEC Bars Illinois Adviser

Timothy J. Roth, a former investment adviser in Stonington, Illinois, was barred from association with any broker/dealer or adviser by the Securities and Exchange Commission (SEC).
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According to published reports, Roth was said to have taken more than $6 million between October 2010 and February 2011 in mutual fund shares from deferred compensation plans of companies that were clients of Comprehensive Capital Management (CCM).

In March 2011, the SEC filed an emergency action against Roth. His assets and those of several companies he controlled were frozen at the same time, and the assets were put into receivership. According to the SEC, Roth’s theft of client assets was later determined to have been more than $16 million.

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The SEC alleged that Roth, who worked out of CCM’s office near Urbana, Illinois, secretly caused his victims’ mutual fund shares to be transferred to an account under his control, even though no such transfer had been requested or authorized by the clients. Then, according to a statement by the SEC, after selling the clients’ shares, Roth funneled the cash proceeds to various accounts and companies under his control or for his benefit, and to fund his own securities trading, without telling clients about the transfers..

Roth was charged with Securities Act violations and in February 2013, after entering a guilty plea, was sentenced to 12 years and seven months in prison by the U.S. District Court for the Central District of Illinois. He was ordered to pay $16,151,964 in restitution to his victims. Roth’s sentence will be followed by a supervised release of three years.

The SEC barred Roth on Monday from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal adviser, transfer agent or nationally recognized statistical rating organization. He is also barred from participating in any offering of a penny stock, including acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer in order to issue or trade in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.

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