Former Prudential Rep Fined For Market Timing

Jan 7 2009 | 11:55am ET

A U.S. Court of Appeals has put the kibosh on a former registered representative of broker-dealer Prudential Securities for helping a group of hedge funds place market timing trades on mutual funds.

According to the Securities and Exchange Commission, Justin Ficken and four other former Prudential representatives known as the “Druffner Group” defrauded mutual funds and their shareholders by placing thousands of market timing trades worth more than $1 billion for five hedge fund customers from January 2001 through September 2003.

The group knew that the mutual fund companies monitored and restricted excessive trading in their mutual funds, but it evaded those restrictions by establishing multiple broker identification numbers and disguised its customers' identities by opening numerous accounts.

For his part, Ficken has been ordered to pay $589,854 in disgorgement and pre-judgment interest.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

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

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...