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SEC Charges 8 Former Mutual Fund Directors

WASHINGTON (AP) -- Eight former mutual fund directors are facing civil charges after they allowed others at the firm to set values for mortgage securities and investors lost roughly $200 million on those funds.

The Securities and Exchange Commission says the directors at Morgan Keegan & Co. delegated the duty to fund managers, even though directors are required by law to set values when market prices are not available.

Last year Morgan Keegan agreed to pay $200 million to settle the SEC's fraud charges that it inflated the investments' value as the housing market was collapsing in 2007.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 10, 2012, at 6:46 PM, neamakri wrote:

    I suggest public pillory for these eight. (See wikipedia for a delightful reading of pillory.)

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