Bank One settles mutual fund charges

June 30, 2004 at 10:12 AM
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NEW YORK, June 30 (UPI) -- Bank One settled charges with New York's attorney general just hours before merging with J.P. Morgan Chase, the Financial Times reported Wednesday.

The bank's mutual fund unit, set to merge with J.P. Morgan Chase Thursday, was the last of four targeted by Attorney General Eliot Spitzer last September.

Bank One agreed to pay $50 million to settle charges of market timing in its mutual funds and to cut its fees by $40 million over the next five years.

Its $57 billion merger with J.P. Morgan Chase will make it the second biggest U.S. bank.

Mark Beeson, who once ran Bank One's $100 billion mutual funds division, will also pay a penalty of $100,000 and is banned from the industry for two years. He and other executives already have left Bank One.

Since the U.S. mutual fund scandal erupted, more than $2.5 billion has been paid by accused or charged parties.

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