Wachovia Corp. said that its Wachovia Securities brokerage unit has received notice from the Securities and Exchange Commission that the agency may recommend enforcement action against the firm for improper mutual fund trading activity.
The activity in question involved Wachovias Evergreen Investment Management subsidiary and an individual broker. The Evergreen employee allegedly made excessive trades in Evergreens Mid Cap Growth fund between December 2000 and April 2003 on behalf of a client.
In July, the SEC notified the bank that it was recommending action against Evergreen, its mutual fund unit. In a regulatory filing made on Monday, Wachovia said it plans to explain to the SEC why enforcement action should not take place.