d to learn that Tom Bailey, the company's founder, decided to sell his remaining ownership to Kansas City Southern, effectively relinquishing control of the company he founded. 2003 ushered in change for Janus as the company merged with Berger Funds and began trading on the New York Stock Exchange under the tick JNS (Janus.com).
             Janus' mission statement has always been to "get investors where they want to go." Tom Bailey began the company with this one simple idea and was able to impart oversized returns for his shareholders over the long run. But investors may not be willing to believe that Janus has their best interests in mind because of some recent scandals that have rocked the mutual fund industry. This once respected fund company has come under fire for unethical and even illegal activities at a time when the company was struggling financially. For example, during the tech boom of the 1990's the Janus Mercury Fund had nearly $16 billion dollars in total assets and was creating over $100 million in revenue in the year 2000 (Strategic Insight). But as the tech bubble burst, the Mercury fund's total assets dropped nearly 70% to less than $5 billion and revenues fell to $30 million (See Graph 1). With revenues drying up, Janus apparently tried to increase revenue by allowing Canary Capital to market-time certain funds and trade after-hours. The actions of Janus seem quite clear; when things get tough financially, cut corners to increase revenue.
             In late 2003, Eliot Spitzer filed a complaint against Janus and Canary Capital Partners for allegedly engaging in late trading and market timing activities. These trading allowances let Canary Capital to make low-risk profits at the expense of individual shareholders. Janus internal memos suggest that Canary's business could generate up to $50 million in additional profits for the fund company (SNL Financial). The complaint filed by Spitzer ...