AmSouth To Pay $11.4M For Shorting Shareholders

Law360 (September 23, 2008, 12:00 AM EDT) -- AmSouth Bank and AmSouth Asset Management have agreed to pay the U.S. Securities and Exchange Commission $11.4 million to settle claims that the company defrauded investors by using shareholder funds for expenses the company itself should have paid.

The SEC accuses AmSouth, now part of Regions Bank, of entering into illegal side deals from at least 1999 to November 2003 with BISYS Fund Services Inc., the administrator of AmSouth Funds.

BISYS allegedly rebated about $16 million of its administration fee for AmSouth's marketing expenses, in exchange...
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