WASHINGTON D.C. - An SEC examination has targeted between 30 to 40 mutual funds that are suspected of artificially inflating their quarter-end performance by engaging in a trading scheme known as portfolio pumping, said Lori Richards, director of the SEC's office of compliance, inspections and examinations.

"We've identified the funds that have increased in value regularly," she said. "Now we are going in and looking at the trading activity in the securities that are held by those funds."

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