Two former brokers at Prudential Securities’ Boston office yesterday vehemently denied allegation they engaged in widespread fraudulent trading, charging Secretary of State William Galvin’s office ofthrowing out “exaggerated or misstated facts.”<\/p>\n
The responses by Martin Druffner and Skifter Ajro were among the latest salvos in the ongoing war of words and legal moves in the burgeoning trading scandals engulfing the $7 trillion mutual fund industry centered in Boston.<\/p>\n
Other ex-Pru brokers and managers previously denied fraud charges filed against them by either Galvin’s office or the Securities and Exchange Commission.<\/p>\n
Yesterday, it was the turn of Druffner and Ajro – and they came out swinging at Galvin.<\/p>\n
In their legal responses to Galvin’s civil charges, the pair reiterated that top Pru managers were “fully aware” that the two conducted so-called “market-timing” on behalf of hedge fund clients.<\/p>\n
They also said employees, some of them “decision-makers” at unnamed mutual funds, also were aware of their controversial business transactions.<\/p>\n
The brokers also denied any charges of illegal late trading or attempts to conceal their identities when making trades. The response also dismissed Galvin’s claim that Prudential received 25,000 to 30,000 letters from mutual fund firms complaining about trading by Pru brokers.<\/p>\n
“This number is a gross mischaracterization and is one of many instances in the (complaint) where the Commonwealth has exaggerated or misstated facts,” the filing said.<\/p>\n
Brian McNiff, spokesman for Galvin, and Michal Collora, a lawyer for the two brokers, both declined to comment yesterday.<\/p>\n
Besides bringing civil fraud charges against three ex-Pru brokers and two former managers, Galvin’s office early this week also brought fraud charges against Prudential Securities itself.<\/p>\n","protected":false},"excerpt":{"rendered":"
Two former brokers at Prudential Securities’ Boston office yesterday vehemently denied allegation they engaged in widespread fraudulent trading, charging Secretary of State William Galvin’s office ofthrowing out “exaggerated or misstated facts.” The responses by Martin Druffner and Skifter Ajro were […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1959","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=1959"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1959\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=1959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=1959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=1959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}