Bank One Corp.'s mutual fund arm on Tuesday agreed to a $90 million settlement with New York state and federal regulators for allowing hedge funds to engage in abusive round-trip trading of its fund shares, a racket that depleted the returns of long-term shareholders.

The latest enforcement action against a tainted fund manager puts an end to the first chapter of a storied fund scandal that began last September when New York Attorney General Eliot Spitzer named Bank One, Strong Capital Management, Bank of America and Janus Capital as key targets of a widespread investigation of mutual fund trading practices. Bank One was the last of the four firms to settle with regulators.

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