Morgan Stanley has agreed to pay $17 million to settle charges that it allowed hedge fund clients to deceptively market-time mutual funds four years ago.

The Securities and Exchange Commission had charged the firm with failure to supervise four employees who allegedly set up multiple accounts for hedge funds to allow them to skirt mutual funds’ market-timing protections in 2002 and 2003.

Two of those former financial advisers, Darryl Goldstein and Christopher O’Donnell, were charged by the SEC last week; a third, Marc Plotkin, has settled with the agency for $90,000 without admitting or denying the charges. The fourth adviser has not been identified.

Morgan Stanley consented to the settlement without admitting or denying the charges.

“Morgan Stanley is please to settle this matter involving the behavior of four Financial Advisors that occurred more than four years ago,” the firm said in a statement. “We have since adopted new policies and procedures to detect and prevent market-timing and late-trading.”