Former Prudential Rep Fined For Market Timing

Jan 7 2009 | 10:55am 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

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.