Prudential Settles For $600 Million

Prudential is the latest financial institution to settle charges brought by the SEC that it had facilitated improper trading of mutual funds. The cost to Prudential is $600M, which seems like a lot of money but it really would have to be measured against the gains and potential gains of the alleged conduct in order to be properly evaluated. You see, this is how is allegedly worked—Prudential brokers would allow favored clients, mostly hedge funds, to trade on news breaking after 4 PM. These late trades gave favored investors a knowledge edge that other investors lacked—think of it like insider trading via time travel. Two Prudential brokers pleaded guilty to criminal charges last year.

Prudential to pay $600 mln, resolve charges-source


Art Samberg, Pequot Settle Insider Trading Charges for $28 Million

Like we told you several weeks ago, Art Samberg and Pequot Capital Management today agreed to settle insider trading charges with Securities and Exchange Commission for $28 million. The SEC Division of Enforcement's also brought a case against the alleged tipper, David Zilkha, a former Microsoft employee. That case will continue in an administrative proceeding before the Commission.