INSPECTOR
On July 30, 2008 the SEC fined Pax World Mutual Funds $500,000 because it failed to follow its own socially responsible investing criteria. The following comments were made by some of the people involved in the case.
"Mutual fund companies marketing socially responsible funds need to be responsible themselves," says David Bergers, regional director of the SEC's Boston office.
"Advisers simply cannot tell investors they are going to do one thing with their funds and then not follow through on those promises," said Linda Chatman Thomsen, director of the SEC division of enforcement, in a statement.
“We regret and take full responsibility for what occurred during the 2001-2005 time period,” Joseph F. Keefe, president and chief executive of Pax World since 2005, said in a statement. “We are also proud of the progress we have made, and we are committed to meeting the highest standards going forward.
Pax World also states on its web site that it will:
• Initiate or support shareholder resolutions at annual stockholders meetings aimed at persuading companies to adopt higher standards of corporate responsibility; and
• Support public policy initiatives that promote greater corporate transparency, accountability and social responsibility.
This company talks a lot about transparency and disclosure.
All that being said I wonder why CEO Joe Keefe, or Chairman of the Board Carl Doerge NEVER informed Pax shareholders that co-owner and treasurer of Pax World Thomas F. Shadek was arrested and convicted of sex crimes in 2006. This pedophile is listed on the Department of Justice Dru Sjodin National Sex Offender Web Site. He is listed in Florida and California.
The following year, Pax World bought the Women’s Equity Fund. If Pax World had been “transparent” and “disclosed” this information, do you think the Women’s Equity shareholders would have approved the sale?
A simple Google search was all it took to find this information. I guess the SEC must have missed it in their 3 year investigation. I also wonder if the $500,000 fine even covers the expenses of the SEC in this “thorough” investigation.
"Mutual fund companies marketing socially responsible funds need to be responsible themselves," says David Bergers, regional director of the SEC's Boston office.
"Advisers simply cannot tell investors they are going to do one thing with their funds and then not follow through on those promises," said Linda Chatman Thomsen, director of the SEC division of enforcement, in a statement.
“We regret and take full responsibility for what occurred during the 2001-2005 time period,” Joseph F. Keefe, president and chief executive of Pax World since 2005, said in a statement. “We are also proud of the progress we have made, and we are committed to meeting the highest standards going forward.
Pax World also states on its web site that it will:
• Initiate or support shareholder resolutions at annual stockholders meetings aimed at persuading companies to adopt higher standards of corporate responsibility; and
• Support public policy initiatives that promote greater corporate transparency, accountability and social responsibility.
This company talks a lot about transparency and disclosure.
All that being said I wonder why CEO Joe Keefe, or Chairman of the Board Carl Doerge NEVER informed Pax shareholders that co-owner and treasurer of Pax World Thomas F. Shadek was arrested and convicted of sex crimes in 2006. This pedophile is listed on the Department of Justice Dru Sjodin National Sex Offender Web Site. He is listed in Florida and California.
The following year, Pax World bought the Women’s Equity Fund. If Pax World had been “transparent” and “disclosed” this information, do you think the Women’s Equity shareholders would have approved the sale?
A simple Google search was all it took to find this information. I guess the SEC must have missed it in their 3 year investigation. I also wonder if the $500,000 fine even covers the expenses of the SEC in this “thorough” investigation.