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November 12, 2009

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Firm to settle mutual funds probe for $175 million

Thursday, May 20, 2004 | 9:26 a.m.

ALBANY, N.Y. -- Strong Financial Corp. founder and CEO Richard Strong agreed to pay a $60 million fine to settle allegations he made $1.8 million in profits through improper trading in mutual funds, regulators said.

Strong Financial would pay $80 million in disgorgement of revenue, civil penalties and fee reductions, in settlements with New York Attorney General Eliot Spitzer and the Securities and Exchange Commission that were expected to be signed today.

Spitzer said Strong, who resigned in December as chairman, CEO and chief investment officer, would also issue a personal apology and accept a lifetime ban by the financial industry.

Strong owns 85 percent of the company, which has been under investigation by federal and state regulators since last fall.

The deal includes structural reforms for fees, sets new standards for board independence and accountability at the mutual fund company and preserves jobs.

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