The SEC announced today that it has distributed nearly $185 million to more than 800 mutual funds that were affected by alleged illegal market timing by Prudential Securities, Inc. The distribution is the first in a series that will ultimately total approximately $270 million.
The distribution follows an August 2006 settlement in which Prudential Equity Group (formerly known as Prudential Securities) agreed to pay $270 million to a distribution fund administered by the SEC, $325 million as a criminal penalty to the U.S. Department of Justice, and $5 million as a civil penalty to the Massachusetts Securities Division.
The Securities and Exchange Commission today announced settled enforcement proceedings against Prudential Equity Group, LLC (PEG), formerly known as Prudential Securities Inc. (PSI), alleging that former PSI registered representatives defrauded mutual funds by concealing their identities, and those of their customers, to evade mutual funds’ prospectus limitations on market timing. PEG has been ordered to pay a total of $600 million pursuant to a global civil and criminal settlement with the United States Attorney’s Office for the District of Massachusetts, the Commission, the Massachusetts Securities Division, NASD, the New Jersey Bureau of Securities, the New York Attorney General’s Office and the New York Stock Exchange. Under the terms of the settlement, $270 million will be paid to a distribution fund administered by the Commission for the benefit of those harmed by the fraud, $325 million will be paid as a criminal penalty to the U.S. Department of Justice, and $5 million will be paid as a civil penalty to the Massachusetts Securities Division. PEG is a registered broker-dealer and investment adviser subsidiary of Prudential Financial, Inc., headquartered in New York, N.Y.
Do you know when the second phase funds will be distributed.
Contract nos. are 000011734 and 0000514475. Thank you.