U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21882 / March 10, 2011
Securities and Exchange Commission v. Frederick O'Meally, et. al., United States District Court for the Southern District of New York, Civil Action No. 1:06-cv-06483-LTS
FINAL JUDGMENT ENTERED AGAINST FORMER PRUDENTIAL REGISTERED REPRESENTATIVE JASON N. GINDER CONCERNING DECEPTIVE MARKET TIMING PRACTICES
The Securities and Exchange Commission announced today that on March 9, 2011, the U.S. District Court for the Southern District of New York entered a final judgment by consent against Jason N. Ginder, a defendant in a civil injunctive action filed by the Commission in August 2006. The Commission's Complaint charged that Ginder, 47, of New Fairfield, Connecticut, was a registered representatives associated with broker-dealer Prudential Securities, Inc., who defrauded mutual fund companies and the funds' shareholders in order to place market timing trades at mutual funds that were trying to detect and block such trading. Without admitting or denying the allegations in the Commission's Complaint, Ginder consented to the entry of a final judgment enjoining him from violating the antifraud provisions of the federal securities laws and ordering him to pay a civil penalty of $300,000.
The Commission's Complaint alleged that, from at least January 2001 until September 2003, certain mutual fund companies tried to detect and block market timing activity. The Complaint alleged that Ginder defrauded mutual fund companies by hiding his and his hedge fund customers' identities through the use of multiple customer account numbers and broker identification numbers. The Complaint alleged that, among other deceptive practices, when mutual funds succeeded in identifying and attempted to block Ginder's trading activity under one customer account or broker identification number, Ginder often simply switched to a different customer account for the same customer or a different broker identification number and continued placing market timing trades.
The final judgment imposed a permanent injunction prohibiting Ginder from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Ginder was also ordered to pay a civil monetary penalty of $300,000. Ginder has also consented to be suspended from association with a broker, dealer, investment adviser, municipal securities dealer, and transfer agent, and from participating in any offer of penny stock, for a period of nine months in related administrative proceedings to be instituted after entry of the permanent injunction.
Two other defendants in the same enforcement action previously settled with the Commission. The Commission's action remains pending against a fourth defendant, Frederick O'Meally.
For further information, please see: Litigation Release No. 19813 (August 28, 2006); please also see Exchange Act Release No. 54371 (August 28, 2006) (settlement with Prudential Equity Group, LLC, formerly known as Prudential Securities, Inc.); Litigation Release No. 20910 (February 25, 2009) (settlement with Michael L. Silver and Brian P. Corbett); In the Matter of Michael L. Silver, Release No. 34-59639 (March 27, 2009); In the Matter of Brian P. Corbett, Release No. 34-59640 (March 27, 2009).