After consenting to a $40 million fine by the Securities and Exchange Commission for inflating the value of mortgage-backed securities in its Ultra Short Opportunities Fund, Evergreen Investment Management is now being investigated by the Massachusetts Securities Division for valuations in another mutual fund and a variable annuity.

The second fund in question, the Evergreen Diversified Income Builder Fund, and the annuity also were invested in specialized mortgage-backed securities, or collateralized debt obligations. In addition, the valuations of other Evergreen funds may be faulty, the firm indicated in a letter to clients.

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