SEC Targets Regions Bank In Mutual Fund Fraud Case

Law360, New York (September 21, 2009, 7:16 PM EDT) -- The U.S. Securities and Exchange Commission has lodged a suit claiming a Regions Financial Corp. subsidiary played along in a massive mutual fund fraud scheme by a pair of unregistered brokers.

Alabama-based Regions Bank, which served as trustee to the mutual fund investment plans, “followed instructions” by distributing “exorbitant,” undisclosed fees to brokers U.S. College Trust Corp. and U.S. Pension Trust Corp., according to a complaint filed Monday in the U.S. District Court for the Southern District of Florida.

The SEC alleges the bank aided and...
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