Bank One Corp. is looking for closure on charges filed by securities regulators that it facilitated improper mutual fund trades for a number of hedge funds by paying a $90 million settlement. The fine marks the Securities and Exchange Commission's 10 th multi-million dollar settlement with a mutual fund provider charged with market timing and other types of improper activities.
As part of the settlement, Bank One's investment advisor unit has agreed to pay a $40 million fine and repay $10 million of earnings derived from improper activities. The SEC is also fining One Group Mutual Funds Chief Executive Mark Beeson a $100,000 penalty and banning him from the securities industry for two years. SEC officials noted that Beeson violated securities laws by permitting Edward Stern, a hedge fund manager with Canary Capital, to rob long-term mutual fund investors of profits by executing a lengthy series of rapid-fire trades over an extended period of time.