Fund advisor J. & W. Seligman admitted Thursday in an SEC filing that it had entered into one arrangement with a market timer in September. It also revealed that one Seligman employee left the firm in connection with an internal review. However, the New York City-based firm also said that an internal review found no improper trades by its employees.

In the filing Seligman also admitted to compensation arrangements with brokerage firms that may have violated some rules. That finding came after the firm how it had tied some fund orders to buy and sell portfolio securities with brokerage firms that had sold Seligman Funds. Seligman ceased that practice in October.

The SEC filing was precipitated by the SEC asking for information on the firm's review, reported Dow Jones on Thursday.

Seligman officials said in the filing that they will continue to cooperate fully with the SEC. They added that the firm was ending the timing relation even before the scandals first broker on September 3. The review also found three market timing arrangements dating from before the end of September 2002.

The filing also said that Seligman will make restitution to any fund that financially harmed by violations of law or internal policies Seligman employees.  

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