MFS could be joining the ranks of firms that have already paid hefty sums to regulators to settle allegations that it looked the other way on short term trading.

According to reports from the Wall Street Journal, Boston Globe and Reuters, the company could pay the SEC as much as $200 million in cash as well as promise the New York Attorney General's office that it will lower fees.

Insiders speculate that a deal could be reached as early next week but also cautioned that the deal could fall through. Any decision would have to be approved by the fund company's parent, SunLife Financial Inc.

The company's problems could become potentially worse as it works on a deal with regulators. Today the company announced that investors have lost as much as $100 million because of late trading at the firm. An internal memo found that investors made trades through as many as 10 broker dealers including Security Brokerage Inc., and the clearing arms of Bank of America Corp. and Bear Stearns Cos. But, executives at MFS maintain that they had no knowledge of these activities beforehand.  

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