For Release: October 9, 2002
PRUDENTIAL SECURITIES, INC. SETTLES CFTC RECORDKEEPING
CFTC Orders Prudential Securities, Inc. to Pay $65,000 Civil Monetary Penalty
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today the issuance of an order accepting an offer of settlement of Prudential Securities, Inc. (PSI), arising out of a complaint filed by the CFTC on May 20, 1997 (see CFTC News Release 4023-97, May 20, 1997, CFTC Docket #97-8).
The CFTC settlement order, entered on October 9, 2002, finds that, through the acts of certain of PSI’s employees, PSI failed to immediately prepare written records of its customer orders that included account identification and failed to produce unfilled or canceled customer orders.
Specifically, the settlement order finds that, from May 1993 through March 1994, certain PSI associated persons (APs) accepted customer orders involving frozen concentrated orange juice without immediately recording on the order tickets the account identification information and the times the orders were received. According to the order, the APs then transmitted or caused other APs to transmit to the trading floor of the New York Cotton Exchange these orders lacking account identification information. Finally, the order finds that the APs failed to retain and produce canceled and unfilled customer order tickets prepared between May 1993 through March 1994.
Without admitting or denying the order’s findings, PSI agreed to the entry of the order, which imposes a civil monetary penalty in the amount of $65,000 and requires PSI and its employees to cooperate in any further investigations and proceedings related to the conduct at issue. The order also includes PSI’s representations concerning the various policies and procedures PSI has in place to ensure that office and floor order tickets are properly prepared.
The following CFTC Division of Enforcement Staff were responsible for this case: Rosemary Hollinger, Gretchen Lowe, Susan Bovee, William Hoar, Alan Edelman, and Patricia Gomersall.
Copies of the Commission’s complaint and order may be found at http://www.cftc.gov.
Associate Director, Regional Counsel