As one of its targets, the investigation, the latest arm in New York Attorney General Eliot Spitzers multi-pronged probe, names Frederick J. OMeally, one of the firms most productive brokers from 1994 to 2003, and who was recently fired.
People briefed on the Prudential probe say that OMeally may have helped investors participate in late trading, the illegal practice of allowing investors to buy into funds after 4 p.m. but at an earlier price. One of the investors he may have helped was also-fired hedge fund trader Steven B. Markowitz, who has already pleaded guilty to other charges and is now cooperating with Spitzer.
OMeally was one of 12 Prudential brokers fired among three different offices last month the other two were in New York and Boston.
All this came just a day after
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