Ex- Prudential Rep. Guilty Of Market-Timing

Sep 19 2008 | 10:02am ET

A former Prudential Securities representative has admitted that he helped his hedge fund clients deceptively market-time mutual fund shares.

Justin Ficken pleaded guilty to one count of conspiracy, three counts of wire fraud, and two counts of securities fraud this week. Ficken made the trades while working at Pru’s Boston office.

Federal prosecutors in Boston charged Picken and two other Pru brokers, the so-called “Druffner Group,” with disguising their identities and those of their hedge fund clients to facilitate the market-timing. The group allegedly defrauded mutual funds by placing thousands of market-timing trades worth more than $1 billion for five hedge fund customers from at least January 2001 through September 2003. According to the SEC, Druffner Group members established multiple broker identification numbers and opened numerous customer accounts for what were, in reality, only a handful of customers, to evade detection.

Ficken has been ordered him to pay $589,854 in disgorgement and pre-judgment interest but has appealed that judgment. He will be sentenced in the criminal case on Dec. 10.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

AIMA: How The U.K.'s SMCR Will Affect U.S. Firms

Jun 20 2017 | 6:29pm ET

U.S. investment managers need to think seriously about how tough new U.K. conduct...

 
Error

From the current issue of