The National Association of Securities Dealers is investigating Prudential Securities to see if illegal late trading has been conducted out of the company’s Boston office, The Wall Street Journal reports.

The NASD is also interested in determining if the orders for these late trades, if conducted, were approved by standard oversight procedures.

It is the second straight day this week Prudential has been in the middle of the growing mutual fund scandal. Tuesday, the Securities and Exchange Commission charged six former Prudential workers, including a branch manager, with late trading and misrepresentation of themselves and clients. ( See MME 11/5/03.) All six were from the Boston office.

A spokesperson for Prudential said the firm is complying with the NASD. However, when reached by The Journal, a spokesperson for Wachovia, Prudential’s parent company, refused to comment on the allegations.

The Journal reported that the NASD inquiry reaches beyond Boston and into other Prudential offices, and a question as to whether Prudential has the computer resources to detect late trades from remote sites is also being investigated.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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