Times Staff and Wire Reports

Anaheim Bank Pays SEC Penalty: Pacific Inland Bank and its parent company have agreed to pay $50,000 to settle a lawsuit accusing the institution of helping four investors operate an extensive scheme to buy $260 million in securities without having the cash to pay for them. The Securities and Exchange Commission suit accused the bank, Pacific Inland Bancorp and the investors of participating for four years in an illegal scheme called free-riding, in which the investors bought stocks and bonds and covered the purchase price by selling the securities almost immediately. The four New York-area individuals opened more than 645 accounts at 62 brokerages under 40 different names, collecting $2.7 million in gains, the agency asserts in its federal court suit filed in Manhattan. The investors cleared their trades through the bank.

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