WASHINGTON (AP) _ A married couple agreed to pay $1.2 million to settle securities fraud charges that alleged mutual funds were overcharged in numerous trades between the woman, a trader, and her husband, a broker at the New York Stock Exchange, regulators say.

The Securities and Exchange Commission charged the scheme carried out by Donna and Phillip Tumminia between August 1991 and August 1992 led them to overcharge several mutual funds and pension plans about $570,000.

The SEC charged that Donna Tumminia, formerly the head trader at Shearson Lehman Advisors, concealed the volume of securities trades that she was funneling to her husband, who was an NYSE floor broker for Adler, Coleman & Co.

The SEC said Thursday that Mrs. Tumminia placed trades for more than 6 million shares of stock with her husband, according to a lawsuit filed in U.S. District Court in New York. The Shearson Lehman Advisors business was sold to the brokerage Smith Barney in 1993. Both firms said she is not an employee.

The SEC also charged that she was concealing an arrangement in which her husband received commissions for those trades, except for a one-cent stock clearance fee to his firm.

In addition, the lawsuit charged Donna Tumminia faked and altered trading records at Shearson to conceal the trades.

The couple agreed to settle the charges, without admitting or denying the allegations, by agreeing to pay $617,315 as a refund of illegal profits and $617,315 in civil penalties. The settlement orders them not to violate securities laws in the future and bars them from the securities industry.

A telephone message seeking comment from the Tumminias' attorney in New York wasn't returned Thursday afternoon. The SEC's complaint said that in August 1992, both Donna Tumminia and Phillip Tumminia were dismissed from their respective jobs at Shearson and Adler.