WASHINGTON -- A former Colorado bank director and his brother have agreed to pay more than $600,000 to settle allegations of insider trading associated with a 1992 merger agreement between Colorado National Bancshares and First Bank Systems.

Without admitting or denying the allegations, Bruce E. Dines, of Denver, and Eugene Dines, of La Jolla, Calif., also consented to Securities and Exchange Commission sanctions that prohibit them from further violating securities laws. In a civil complaint filed by the agency, Eugene Dines was accused of buying Colorado National stock in late 1992 while in possession of nonpublic information obtained from his brother Bruce, who was a director of the Colorado bank at the time.

The pair agreed to pay about $654,000 in penalties and interest as part of the settlement, the SEC said.

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