Second Circuit Court of Appeals Reverses Judgment Against Former Securities Broker Regarding Market Timing Practices

The SEC announced that the U.S. Second Circuit Court of Appeals overturned the March 12, 2013 judgment against a former Prudential securities broker, which found that he used fraudulent and deceptive trading practices to conceal his and his customers' identities to evade trading blocks from mutual fund companies that detected market timing activity by the broker.

In reversing the judgment, the Second Circuit Court of Appeals concluded that there was insufficient evidence to support a finding of negligence.

See: SEC Litigation Release. Related news: Court Orders Former Prudential Securities Broker to Pay Penalties for Market Timing in Mutual Fund Shares (March 14, 2013).