Scudder Settles With SEC Over Directed Brokerages

Law360, New York (September 28, 2006, 12:00 AM EDT) -- In order to settle allegations that they steered stock trades to specific brokerage firms, the managers of Scudder Distributors Inc. will pay $19.3 million to the Securities and Exchange Commission.

The managers have agreed to return $14.2 million plus interest worth $2.1 million to a total of 35 funds. The settlement also includes a $3 million civil penalty, the SEC said on Thursday.

Between 2001 and 2003, Scudder made agreements with 18 brokerage firms in which the firms agreed to direct stock trades and commissions generated...
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