Article: Costly Mutual Fund Scandals Growing Wider.

By Harriet Johnson Brackey, The Miami Herald Knight Ridder/Tribune Business News

Nov. 18--The mutual fund scandals cut even more deeply across the industry Monday, when 16 fund companies were implicated in a $50 million settlement related to shady sales practices at Morgan Stanley. Separately, Putnam Investments reported massive withdrawals by its investors.

The Securities and Exchange Commission and the NASD charged Monday that the Morgan Stanley gave preferential treatment to some mutual fund companies, pushing their products in exchange for millions of dollars in secret commission payments.

Morgan Stanley failed to disclose the practice ...

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