BANKING & FINANCE - June 10, 1992

SEC Fines Mutual Fund: The Securities and Exchange Commission voted to impose a $25-million fine on First Investors Consolidated Corp. to settle charges that the company misled investors about its junk-bond mutual funds. The settlement was approved by SEC commissioners at a closed meeting, according to sources close to the agency. It is believed to be the stiffest ever meted out to a mutual fund company. Without admitting or denying wrongdoing, the New York firm agreed to pay investors $25 million nationwide. The company estimates that investors lost a total of about $80 million, although some state securities regulators contend that the figure is more.