Janus: We are 'not a target' in insider trading probe

Janus Capital Group Inc. has issued a statement clarifying that it isn't a target in the current insider trading probe, despite having received a subpoena last week as part of the investigation. “Janus has not been accused of any wrongdoing, and the government confirmed that Janus is not a target of its investigation into potential insider trading,” Shelley Peterson, a spokeswoman, wrote in an e-mailed statement. Investigators are conducting criminal and civil probes into possible insider trading at a number of companies. Specifically, investigators are trying to determine if traders at various financial services firms received non-public information from expert networks and third-party research firms. Last week, FBI agents raided the offices of hedge funds Diamondback Capital Management LLC and Level Global Investors LP. A few days later, Don Chu, a consultant with Primary Global Research LLC, an expert-research network, was arrested on insider trading charges. As part of the probe, Janus and Wellington Asset Management received subpoenas. While neither of the companies has been accused of any wrongdoing, 37% of financial advisers surveyed by InvestmentNews said they will postpone investing in the mutual fund firms' portfolios until they are completely cleared. Sara Sherman, a spokeswoman at Wellington, was not available at press time.