SEC Probes Mutual Funds Over Kickback Scheme Ties

Law360, New York (October 26, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission is reportedly eyeing a slew of mutual funds over ties the companies may have with Bisys Fund Services Inc., which last month shelled out $21.4 million for its role in a fraudulent kickback scheme that allegedly netted hundreds of millions of dollars.

Twenty-seven mutual fund companies are being targeted in the newly launched investigation, which the Wall Street Journal reported on Thursday, citing people familiar with the probe.

John Heine, a spokesperson for the SEC, said the agency had no...
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