The Securities and Exchange Commission has arranged the transfer of a $38m (€28m) payout by Veras, a group of hedge funds accused of defrauding mutual funds through late trading and market timing abuse over a two-year period, to 810 of its alleged victims.

The SEC said the Veras hedge funds had paid the money to settle charges of unlawful market timing and late trading in 2002 and 2003, without admitting or denying the US market regulator's findings.