The Securities and Exchange Commission has gotten the Veras hedge funds to agree to return $38 million to 810 mutual funds that they market timed.

Under the Sarbanes-Oxley Act, the SEC can include civil penalties along with disgorgement in fair fund distributions.

To date, the SEC has distributed more than $1 billion in fair funds.

“Today’s distribution marks another significant step in the Commission’s vigorous program to return money to investors injured by mutual fund trading abuses,” said Linda Chatman Thomsen, director of the division of enforcement.

The SEC first brought its charges against the funds and two of their principals in December 2005. They were: Veras Capital Master Fund, VEY Partners Master Fund, Veras Investment Partners, Kevin D. Larson and James R. McBride.

Although the respondents settled the order without admitting to or denying the wrongdoings, the SEC said that between January 2002 and September 2003, the hedge funds market timed and late traded the mutual funds.

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