SEC Announces $185 Million Distribution to Investors Injured by Prudential Securities Market Timing Fraud
FOR IMMEDIATE RELEASE
Washington, D.C., March 26, 2010 — The Securities and Exchange Commission today announced a distribution of nearly $185 million to more than 800 mutual funds that were affected by illegal market timing by broker-dealer Prudential Equity Group (then known as Prudential Securities, Inc.), which was the subject of a previous SEC enforcement action.
The distribution marks the first in a series of disbursements that will total approximately $270 million — the disgorgement amount that Prudential Equity Group was ordered by the Commission to pay in a settlement of the enforcement action.
"This substantial distribution reflects the SEC's ongoing efforts to compensate mutual funds and their shareholders for the harm caused by illegal market timing," said David P. Bergers, Director of the SEC's Boston Regional Office. "We look forward to disbursing the remaining funds in the coming months."
The Commission issued an order approving the Prudential Distribution Plan on Feb. 4, 2010. Investors can obtain additional information about the distribution process, including a copy of the Distribution Plan, by visiting http://www.psidistributionfund.com or by calling the Fund Administrator, Rust Consulting, Inc., at (866)-898-5095.
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For more information, contact:
David P. Bergers, Regional Director or John T. Dugan, Associate Regional Director
SEC's Boston Regional Office
Order Approving the Plan:
Order Instituting Proceedings against Prudential: