The U.S. Securities and Exchange Commission has settled yet another mutual fund market timing case, this one with a couple of executives from companies related to AIM Funds.

The SEC reported that it has settled proceedings with Michael Cemo, former president, CEO and a director of AIM Distributors Inc., the primary distributor and principal underwriter to the AIM Funds. He received a nine month ban from working with a broker or investment advisor, a civil penalty of US$125,000, and a case and desist order. He consented to the penalty without admitting or denying the SEC’s findings.

In its order, the SEC finds that Cemo willfully caused violations of federal securities laws by permitting market timing agreements, between January 2001 and September 2003, within certain portfolios of the AIM Funds. The firm settled proceedings last October, agreeing to disgorgement of $20 million, AIM Advisors was ordered to pay a civil penalty of US$25 million, and AIM Distributors, a civil penalty of US$5 million.

The SEC also settled with Edgar Larsen, the former chief investment officer of AIM Advisors, on similar allegations. He is suspended for six months and will pay a US$100,000 penalty. He also consented to the order without admitting or denying its findings.