LAWSUITS NEWS & LEGAL INFORMATION
Bisys Group Inc.
Roseland, NJ: (May-23-07) The Securities and Exchange Commission filed charges against Bisys Group Inc., a financial services provider, alleging that the company violated financial reporting rules in a way that inflated earnings by some $180 million over three years.
In a settlement reached, Bisys Group agreed to pay $25 million in restitution to settle the federal regulators' charges. The settlement followed a tentative agreement, which the company and the agency's enforcement staff negotiated in November 2006. Bisys agreed to pay $25 million in restitution and interest, which will go to investors deemed to have been harmed by its alleged improper accounting between July 2000 and December 2003, especially related to its insurance services division.
In an earlier case with the SEC, company subsidiary Bisys Fund Services Inc., a mutual fund administrator, agreed in September 2006 to pay $21.4 million in a settlement with the agency for its alleged role in helping 27 mutual fund advisers defraud investors. SEC officials said it was the agency's first case highlighting the role of mutual fund administrators helping investment advisers illegally use fund assets to pay marketing expenses as mutual fund investors unknowingly paid millions of dollars for marketing of their funds resulting from the company's misconduct. [FORBES: REPORTING RULES]
Published on May-24-07
In a settlement reached, Bisys Group agreed to pay $25 million in restitution to settle the federal regulators' charges. The settlement followed a tentative agreement, which the company and the agency's enforcement staff negotiated in November 2006. Bisys agreed to pay $25 million in restitution and interest, which will go to investors deemed to have been harmed by its alleged improper accounting between July 2000 and December 2003, especially related to its insurance services division.
In an earlier case with the SEC, company subsidiary Bisys Fund Services Inc., a mutual fund administrator, agreed in September 2006 to pay $21.4 million in a settlement with the agency for its alleged role in helping 27 mutual fund advisers defraud investors. SEC officials said it was the agency's first case highlighting the role of mutual fund administrators helping investment advisers illegally use fund assets to pay marketing expenses as mutual fund investors unknowingly paid millions of dollars for marketing of their funds resulting from the company's misconduct. [FORBES: REPORTING RULES]
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