Report: More Scandal Settlements on the Horizon

June 10, 2004 ( - Federal and state regulators are apparently on the cusp of hammering out settlements with Bank One Corp., Conseco Inc. and Invesco Funds Group Inc. over abusive fund trading allegations.

An unnamed source told Reuters that two of those settlement pacts may come by the end of June.

Bank One was one of the four companies named in    a September complaint filed in September by New York State Attorney General Eliot Spitzer that sparked an industrywide probe of abusive trading practices by mutual funds – particularly market timing and late trading (See Spitzer Fund Abuse Probe Pumps Out More Subpoenas ).

In May, Invesco, a unit of Amvescap, asked federal regulators to give it until the end of the month to settle a lawsuit filed in December by the U.S. Securities and Exchange Commission (SEC) and attorneys general in Colorado and New York over improper trading in mutual funds (See DoL Requests Invesco Trading Information ). Regulators said Invesco’s management allowed selected investors to profit from market timing.

Conseco executives were told in January the company might be charged with improper trading of its variable annuities business, the company said in a regulatory filing (See  Regulators Readying Conseco VA Action ).