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Tuesday, October 22, 2019

N.J. AG announces settlement with broker-dealer

By Bryan Cohen | May 3, 2013

NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Jeffrey Chiesa announced a consent order Thursday with a Newark-based broker-dealer that will pay $100,000 plus restitution to resolve self-reported security violations.

Pruco Securities LLC self-reported the violations to the Division of Consumer Affairs' Bureau of Securities related to the late execution of particular mutual fund transactions. Pruco has paid $585,628 in restitution to 1,508 accounts held by investors in New Jersey and will pay as many as 253 additional investors as much as $125,000.

Under the terms of the settlement, Pruco will also pay $20,000 in court and attorney costs, $40,000 toward the bureau's investor education programs and $40,000 in civil penalties.

"The bottom line is that investors will not sustain any losses resulting from the violations that occurred," Chiesa said. "This settlement reflects our commitment to protect investors and their hard-earned monies through robust regulation of New Jersey's securities industry."

Pruco improperly priced paper orders and failed to reasonably supervise its agents. After Pruco discovered the violations, the company conducted an internal review and implemented changes to its procedures and policies to make sure similar violations do not occur in the future.

Pruco's cooperation on this matter and the corrective actions it took were taken under consideration when determining the terms of the settlement.

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