Five former Prudential Securities Inc.
brokers and two former branch managers in Boston were charged by
the U.S. Securities and Exchange Commission and Massachusetts
regulators with securities fraud for improper mutual-fund
trading.
The SEC’s civil complaint against brokers Martin Druffner,
Justin Ficken, Skifter Ajro, Marc Bilotti and John Peffer, and
their manager Robert Shannon alleged they defrauded dozens of
mutual funds by misrepresenting the identities of their customers
to make thousands of short-term trades over more than two years.
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“The defendants were able to circumvent restrictions
intended to protect mutual fund shareholders against excessive
market timing,” SEC Enforcement Director Stephen Cutler said in
a statement. “That’s fraud, plain and simple.”
The widening investigation of the $7.1 trillion mutual fund
industry already has led to the firing or suspension of more than
30 officials at money management firms, banks and brokerages.
Bloomberg News
