* Jury finds ex-MFS executive liable for insider trading

* MFS bought $65 mln in bonds before official announcement

(Adds details, background)

WASHINGTON, June 22 (Reuters) - A former manager of fixed
income mutual funds for Massachusetts Financial Services Co was
found liable for insider trading of 30-year Treasury bonds,
federal securities regulators said on Monday.

Steven Nothern, former MFS senior vice president, was
accused of generating some $3.1 million in illegal profits
after finding out on Oct. 31, 2001 that the Treasury Department
had decided to stop issuing the long bond, the U.S. Securities
and Exchange Commission said in a statement.

According to the SEC, Nothern obtained the market-sensitive
information from a Washington consultant, Peter Davis, who was
allowed to attend the Treasury Department's quarterly refunding
news conferences on the condition he honor the news embargo
imposed by the government until the designated public
announcement time.

On Oct. 31, 2001, the news conference ended at about 9:25
a.m. ET and Davis allegedly placed a series of cell phone calls
to his clients, including Nothern, the SEC said. Nothern knew
about the department's plan to stop issuing 30-year bonds
before the public announcement at 10 a.m. ET and he and other
MFS portfolio managers that he tipped bought $65 million in par
value of 30-year bonds, according to the SEC lawsuit.

The Boston jury hearing the civil case returned a verdict
on Monday that Nothern violated federal securities law.

The SEC wants the court to require Nothern to turn over his
illegal profits and to impose a civil penalty.

"The verdict makes clear that it's illegal to traffic in
confidential market-sensitive information about government
securities," said Erica Williams, the SEC's lead trial attorney
in the case.

The case is Securities and Exchange Commission v. Steven E.
Nothern, U.S. District Court, District of Massachusetts, No.
05-10983.
(Reporting by Julie Vorman; editing by Andre Grenon)