WASHINGTON (AP) -- An investment fund owned by Wells Fargo & Co. is paying $40 million to settle federal charges that it inflated the value of a mutual fund that invested mainly in securities tied to home mortgages and only selectively told shareholders about the fund's problems.

The Securities and Exchange Commission announced the settlement with Boston-based Evergreen Investment Management Co., which did not admit or deny wrongdoing.

Evergreen and an affiliate agreed to pay $33 million to compensate fund shareholders, as well as civil fines totaling $4 million and around $3 million in restitution of allegedly ill-gotten gains.

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