Prudential Pays $382K to Settle B Share Charge

In response to the Securities and Exchange Commission’s charge that one of its representatives improperly sold mutual fund B shares and that it failed to monitor its sale of various classes of mutual funds, Prudential Securities has agreed to pay $382,000. However, Prudential neither confirmed nor denied the allegations. The settlement broke down to $300,000 in civil penalties, and $82,000 of which will serve as reparations to investors reportedly hurt by the companies’ conduct.

In addition, the SEC has started proceedings against former Robert Ostrowski, a former Prudential registered representative, and Rees Harris, a former Prudential branch office manager in Wilkes-Barre, Pa. Ostrowski is said to have misled investors in order to maximize his own returns, and Harris is accused of failing to properly supervise him.