U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Prudential Equity Group, LLC, formerly known as Prudential Securities Inc.

On August 28, 2006, the SEC instituted settled administrative proceedings against Prudential Equity Group, LLC, formerly known as Prudential Securities Inc. The SEC’s order in this matter found that former registered representatives of Prudential Securities, Inc. used fraudulent market timing practices to conceal their identities, and those of their customers, to evade mutual funds’ prospectus limitations on market timing. Under the settled order, Prudential Equity Group, LLC must pay $270 million in disgorgement for distribution to those harmed by the registered representatives’ fraudulent conduct.

Under the terms of the SEC’s order, an independent distribution consultant (IDC) must submit a Distribution Plan to the SEC to distribute the $270 million to those harmed by the registered representatives’ fraudulent conduct. According to the Commission’s Rules of Practice, notice of the proposed Distribution Plan must be published for at least 30 days, specifying how copies of the proposed Distribution Plan may be obtained, and describing the process by which persons may comment on the Plan. A link to that notice will be provided on this website and the notice shall be published in the SEC Docket. After publication and comment, the proposed Distribution Plan will be submitted to the SEC for approval. When the SEC approves the Distribution Plan, with modifications as appropriate, distributions will begin.

For more information on the SEC’s action, you can read In the Matter of Prudential Equity Group, LLC, formerly known as Prudential Securities Inc., 34-54371 (Aug. 28, 2006). If you have questions, you can contact the SECís Boston District Office at (617) 573-8900 or boston@sec.gov.

http://www.sec.gov/divisions/enforce/claims/prudential.htm


Modified: 06/19/2008