Senators Rip SEC Over Mutual-Fund Abuses

[joeunderdog]

WASHINGTON - Federal and state law enforcers drew a portrait Monday of widespread trading abuses within the mutual fund industry and among brokers that siphon money from ordinary investors. Senators expressed outrage at the abuses and dissatisfaction with the response of the Securities and Exchange Commission.

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The SEC found, for example, that a quarter of the nation's largest brokerage houses helped favored clients illegally trade mutual funds after hours. That finding moved Sen. Peter Fitzgerald, R-Ill., to ask: "We're talking about serious, wholesale criminal violations coming to light, aren't we?"

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Companies must be forced to pay back to investors the hefty fees received for managing mutual funds while they allowed fund trading abuses to occur, New York Attorney General Eliot Spitzer testified.


"This number will be big. It will impose pain, and it should," he said.


Repayment of management fees would be in addition to restitution to shareholders of profits made from alleged improper trading, said Spitzer, who charged in September that preferential trading deals for big-money customers at mutual fund companies were taking billions of dollars from ordinary investors.

more...
http://story.news.yahoo.com/news?tmpl=story&ncid=&e=15&u=/ap/20031103/ap_on_bi_ge/mutual_fund_abuses

Now, if I remember correctly, the last big fine was about $350 Mil on Billion$--not a bad return if you can get it. Here we go with alot of election year tough talk, lots of dragging feet, lots of early retirements and little for the victims (us regular guys.) These guys are retiring instead of going to jail. What criminal wouldn't? What a country.