Prudential Financial Inc. (PRU), insurance giant, agrees through one of its subsidiary to pay $600 million in fines and restitution to avoid being prosecuted on charges that it helped favored customers to make improper mutual fund trades, as reported by WashingtonPost.com.
The settlement stems from the 2003 mutual fund scandal uncovered by New York Attorney General Eliot L. Spitzer and is one of the largest as well as the first to include federal criminal charges.
Spitzer's revelations that mutual fund firms had cut secret deals with big investors known as hedge funds shook the $9.3 trillion industry and sparked a host of investigations.
Know More about mutual funds at GrowYourFunds.com.
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