As expected, former Prudential Securities
broker Martin Druffner has pleaded guilty to federal fraud charges related to market timing for mutual funds, reports Reuters
Druffner was charged with four counts of securities fraud and four counts of wire fraud for helping hedge funds market time mutual funds. Druffner was one of a team of Prudential brokers based in a Boston office that aided the hedge funds. He faces up to 20 years in prison. Druffner is scheduled to be sentenced on December 12.
Druffner accepted a statement which said that he made $1 million in net commissions from the trades.
"He recognizes that he made some mistakes in his career at Prudential and hopes to start his life anew," Druffner's lawyer Michael Collora told Reuters. Collora said that Druffner's jail time may be reduced if he aided federal officials in their investigation.
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