While brokers, bankers and hedge funds certainly played a role in the fund trading scandals, mutual fund executives wittingly turned a "blind eye" to the misdeeds, Paul Roye, the SEC’s top fund regulator, told attendees at the ICI Investment Management conference in Palm Desert, Calif., yesterday.

And that blind eye has most definitely hurt shareholders and wrought "long-term damage to the industry," Roye said, The Wall Street Journal reports.

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