Mutual funds reeling from questioned trade practices

The once rock-solid reputation of mutual funds has been tarnished in recent months after charges of questionable trading practices have come to light.

Last summer, New York Attorney General Elliot Spitzer charged that some mutual funds were engaging in two dubious practices–one of them illegal–and announced a probe to determine how far these practices extended in the industry.

Since then, new revelations have been coming out almost weekly. The most recent came Jan. 15 when Denver-based Invesco Funds Group — an $18 billion mutual funds company — said it would seek settlement with regulators over accusations of questionable mutual funds trading.

Ninety-five million…