US SEC charges 8 mutual fund directors over asset valuation

WASHINGTON Mon Dec 10, 2012 11:25am EST

WASHINGTON Dec 10 (Reuters) - U.S. securities regulators charged eight former mutual fund board directors on Monday with fraudulently overstating the value of their securities at the brink of the housing crisis.

The Securities and Exchange Commission said the eight directors, who oversaw five Memphis, Tennessee-based funds, had violated their asset pricing responsibilities under federal securities laws.

The mutual funds involved in the case include the Morgan Keegan Select Fund. The SEC had previously charged Morgan Keegan & Co and Morgan Asset Management with fraud related to subprime mortgage-backed securities, and the firms agreed to settle that matter for $200 million.

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