As rumors circulate about a potential $300 million settlement between MFS Investments and regulators, the beleaguered fund firm may be dealt another blow as the SEC is considering punishing two of its top officials for failing to supervise activities, Reuters reports.

Firm CEO John Ballen and CIO Kevin Parke may face sanctions ranging from a fine to a temporary suspension. Both Ballen and Parke have hired separate independent counsel and the firm would not comment on negotiations ( See "MFS CEO Hires Securities Fraud Lawyer," MME 1/28/04).

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