NashVegas
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Tue Aug-29-06 07:49 AM
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Prudential to Pay Fine in Trading |
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http://www.nytimes.com/2006/08/29/business/29fund.html Prudential Financial, the life insurance company, agreed yesterday to pay $600 million to settle charges with federal and state regulators that one of its units engaged in inappropriate mutual fund trading.
The payment, the second-largest levied against a financial institution over the practice, may bring to a close a three-year investigation into the improper trading of mutual funds that has ensnared some of the largest names on Wall Street and the mutual fund industry.
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The complaint against Prudential focuses on four brokers in the firm’s New York City offices. According to regulators, the four men concocted an elaborate scheme to facilitate as many as a thousand transactions a day for their hedge fund clients by going to great lengths to disguise the origins of the trades. The business was very profitable for Prudential and the brokers reaped the rewards, the complaint said. Frederick J. O’Meally, the team leader, was paid $4.7 million from 2001 to 2003, making him the top-producing broker at Prudential during this time.
... According to the complaint, the brokers used more than 750 different account names to cloak the aggressive trading of their hedge fund clients, which included Millennium Partners and Canary Capital Partners, two funds that were among the most active market timers. They focused on as many as 25 mutual funds, including Putnam, Janus and Fidelity. Both Millennium Partners and Canary Capital Partners have reached settlements with regulators.
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leetrisck
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Tue Aug-29-06 07:55 AM
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1. So what happens to the rest of us |
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left hanging out here - they pay a fine but we don't get anything.
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ShockediSay
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Tue Aug-29-06 10:32 AM
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2. Prudential also got themselves into deep doodoo 5-10 years ago |
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Edited on Tue Aug-29-06 10:50 AM by ShockediSay
peddling life insurance as an investment w/ guaranteed retruns, as I recall. It's the corporate economy, stupid! Paychecks are falling further and further behind and it's going to corporate profits! http://www.nytimes.com/2006/08/28/business/28wages.html
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DU
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Thu May 09th 2024, 10:01 PM
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