Reply #26: Former Prudential broker charged with FRAUD [View All]

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7B5B3BD963%2D5493%2D4799%2DA4CD%2DA5FE987AC8BE%7D&siteid=mktw

BOSTON (MarketWatch) -- Federal prosecutors have filed charges against a former broker at Prudential Securities in connection with fraudulent trading in mutual funds.

U.S. Attorney Michael Sullivan said late Tuesday that Skifter Ajro, 37, was charged in an "information" with two counts of wire fraud and two counts of securities fraud.

An information is not a formal indictment, and often signals a plea agreement may be in the works.

In a statement, federal prosecutors alleged Ajro and other brokers at Prudential securities engaged in deceptive and fraudulent behavior to execute "market timing" trades on behalf of seven hedge-fund clients.

Market timing is the rapid buying and selling of mutual-fund shares, a practice that can erode the returns of long-term shareholders.

The prosecutors allege Ajro made over $700,000 in gross commissions for himself and over $200,000 in net commissions as a result of the market-timing trades.

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