Market Timing and Late Trading
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From what I know about AGE I don't doubt you. They have made me furious also. This could very well leave Bagby playing the fiddle while that sh**house burns.
From what I know about AGE I don't doubt you. They have made me furious also. This could very well leave Bagby playing the fiddle while that sh**house burns.Hough, what they did was disgusting. I still have wholesalers asking me about the office. They can't believe AGE has not done one thing about it. All AGE can do is lie, even when there is a huge paper trail of evidence against them. Man, are they going to shred every ticket, statement, confirm, LOA, account card and pull an Arthur Andersen. As for Bagby, why did Ben gives this fool a job. I read his internal memos about AGE being an integrity based firm, doing the right thing for the client, blah, blah, blah. I will not rest until I see criminal charges against him and his managers. Then my work will be done.
Compliance With Laws, Rules and RegulationsIt is A.G. Edwards' policy that its directors, officers and employees comply with all federal, state, local and international laws (including insider-trading laws) as well as regulations that govern the conduct of its business. This policy extends to full compliance with federal, state and international laws prohibiting money laundering and with the safeguards included in the USA Patriot Act.
As part of A.G. Edwards' commitment to comply with all laws and regulations governing its business conduct, any violations of such laws and regulations, or any actions directed toward another employee in retaliation for reporting of such violations, may result in immediate disciplinary action, up to and including termination, and may result in the reporting of such conduct to governmental, regulatory and/or law enforcement agencies.
For Bagby and his managers, what part of your own Code of Ethical Conduct don't you understand? You idiots wrote the damn thing. State of Georgia nearly kicked you out. The State of Massachussetts wants to do the same thing. Illinois and Florida are next in line, right behind the SEC, NASD, NYSE, and the Department of Justice. The crooks are still on board.
Is AGE anywhere near a settlement at this point?
Do you know where regulators are in the process?
AGE claims they are going to "vigorously defend" against the charges. But 14 firms have settled. AGE is too stupid to figure out that there is no legal way to market time or late trade. But seriously, the settlements recently have been excess of $100 million, which includes CIBC and Prudential. Bear Stearns has set their legal reserves at somewhere around $200 million. Those companies pockets are deep AGE's is not. So it could be a matter of survival on remaining independent. If they get hit with something of that amount, that would be damaging to their financial statements and their reputation and you can see the class action suit against AGE and its executives for attempting to hide a multi-billion dollar fraud with everyone from the CEO to the branch managers being complicit coming down soon. I have done my research and looked at the Mass complaint and its exhibits and other complaints. AGE was not being as truthful with the SEC and with Mass as you would think. AGE's internal investigation was a sham. They never questioned witnesses to the fraud including myself, they asked the perpetrators, who were the managers. Do you think they would incriminate themselves? Market timing and late trading has been verified. Money was being stolen. As for the regulators, I have already been questioned. They were quite aggressive. If I have to testify, I will do it gladly. But I can see not only civil charges, but criminal charges coming down. Out of all the firms I've researched this has to be by far the worst case. I'm still in shock on how AGE treated the employees coming forward to tell the truth. And the response I got from AGE after I left was disgusting. This company can deny everything and bad mouth an employee who told the truth, my lawyer said its a standard response and not to take it personally. But do these idiots realize the statements, commission runs, the comments from wholesalers, eyewitnesses, all this point only in one direction, securities fraud, wire fraud, etc. And if this f**king company mentions integrity one more f**king time. I am going to personally send Bagby a f**king dictionary so he could look up the meaning for himself. Whew, I feel better now.
THE HEAT IS ON, AGE. YOUR NEXT.
Ex-Prudential broker charged with fraud
Friday August 26, 9:32 am ET
U.S. Attorney Michael Sullivan told Reuters Martin Druffner made $1 million in commissions after he engaged in the quick trading of mutual funds with several other former Prudential traders and managers.
In market-timing trades, investors exchange shares rapidly in the hope of exploiting inefficiencies in mutual-fund pricing.
Druffner, 36, was one of seven former Prudential employees charged by state and federal securities regulators in 2003 with making millions of dollars by quickly trading in and out of mutual funds, at times under false names.
"It is alleged that ... Druffner and other brokers who worked with him defrauded mutual fund companies and the companies' mutual funds by employing various deceptive and fraudulent acts and practices," Sullivan told the news agency.
If convicted, Druffner could face up to 20 years in prison and $250,000 in fines on each of four counts of wire fraud and 20 years in prison and a $5 million fine on each of four counts of securities fraud, Reuters says.
The trades took place between 2001 and 2003, prosecutors allege.
Charlotte-based Wachovia Corp. (NYSE:WB - News) merged its retail brokerage operations with those of Prudential Securities in the summer of 2003. New Jersey-based Prudential Financial Inc. (NYSE:PRU - News) owns a 38% stake in Wachovia Securities. Wachovia owns the rest.
Another former Prudential employee involved in the case, Skifter Ajro, pleaded guilty to securities fraud this month and will be sentenced in November. So far, two others have been charged in the case.
Massachusetts securities watchdog William Galvin also accused Prudential Securities of ignoring scores of letters sent by 68 mutual-fund companies warning of market timing in the company's Boston office, Reuters says.
Published August 26, 2005 by the Charlotte Business Journal