Prudential Financial and a subsidiary have agreed to pay $600 million in penalties to resolve government allegations of deceptive market timing in the trading of mutual funds. The Justice Department will file a criminal information against Prudential Financial and its subsidiary, Prudential Equity Group, but has agreed to defer prosecution so long as the companies abide by terms of the agreement.
A criminal information is a criminal charge filed in court by prosecutors, usually when the defendant has agreed to waive grand jury indictment. The government alleges that Prudential Equity Group engaged in deceptive late market timing in the trading of mutual fund shares. The $600 million penalty will resolve all civil and criminal allegations. The agreement was reached with both Prudential Equity Group and its parent company, Prudential Financial.
Source: Associated Press
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