Federal prosecutors say the conspiracy lasted from January 2002 to December 2003, but both complaints list improper trades only after June 2002.

In one case, a portfolio manager was found to have created a false document to conceal improper personal trades, according to a former employee.

That case identified two employees who profited by making improper trades in their own fund shares starting as early as 1998.

The settlement is the largest to date in the wide-ranging fund investigations and the first to focus on the role of boards in permitting improper trades.

The couple also argued that Mr. Weckbaugh made improper and excessive trades in their account without authorization from them.

Federated Investors said it would pay $7.6 million to compensate shareholders for improper trades.

The firm was also fined $300,000 and ordered to pay restitution of $300,000 to the funds affected by the improper trades.

Instead of being disciplined, the Boston brokers were allowed to ignore trading restrictions and bypass other procedures to make improper trades.

While executives at Putnam uncovered the improper trades in 2000, the fund managers were not punished and continued in their jobs managing client money.

Shouldn't this kid be on World of Warcraft or something, instead of supporting the improper trade in exotic animals?