Another Fund Settlement
One more of the holdouts in the mutual fund scandal has settled. Richard Strong
, founder of the Strong Funds
, has paid a $60 million fine and been banned from the industry for life. His company paid $115 million and agreed to expense reductions (there it is again), and two other executives have also been banned for life. This was an especially bad case — Mr. Strong was market-timing his own funds.
The company's letter to the shareholders is here
Update June 14, 2000:
It looks like Mr. Strong is not going to have to eat much macaroni after all. According to this Forbes article, he owned 85% of the investment company named after him. It was just sold to Wells Fargo for about $500 million. Sure sounds better than my 401k.
He should have gone to jail.