The Securities and Exchange Commission said Tuesday that it fined Bisys Fund Services, a division of Bisys Group Inc., $21.4 million, including a $10 million civil penalty, for allegedly defrauding mutual fund investors from 1999 to 2004.
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The SEC said that Bisys agreed to the settlement without admitting or denying the findings of the investigation.
The agency said that Bisys Fund Services, of Roseland, N.J., improperly set aside a portion of its administration fees to use for marketing mutual funds. The division also agreed to give up $9.7 million of improper gains and pay interest of $1.7 million. The money will be used for the benefit of the harmed mutual funds.
Bisys administers more than $400 billion of assets for about 2,000 portfolios.
