Federal regulators on Wednesday filed civil fraud charges against two former FleetBoston Financial executives, alleging the duo allowed preferred customers to engage in abusive mutual-fund trading practices at the expense of its long-term fund shareholders.

The charges were brought in conjunction with the finalization of a previously disclosed agreement with the Securities and Exchange Commission under which Bank of America agreed to pay $515 million in restitution and fines to settle allegations that it permitted favored clients to engage in market timing and illegal late trading. In addition, the SEC said it reached an agreement with three other former FleetBoston employees. Charlotte, N.C.-based BoA acquired FleetBoston last April.

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