DENVER - Founders Asset Management LLC and its former president and owner have agreed to settle fraud charges by the Securities and Exchange Commission against the firm stemming from commission payments made in the early 1990s.

Bjorn "Erik" K. Borgen, the former owner, agreed to pay a $150,000 fine and $505,000 in payments to clients who were allegedly charged higher brokerage commissions than other clients. Founders, which was purchased in 1998 by Mellon Financial Corp., agreed to pay a $50,000 fine.

Mr. Borgen and Founders did not admit or deny the SEC's findings.

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