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Ex-Pru Branch Manager Charged In Market-Timing Scheme

The U.S. Attorney's Office in Boston has charged Robert Shannon with one count of aiding and abetting securities fraud in an ongoing investigation that resulted in guilty pleas of some of the men Shannon supervised.

The U.S. Attorney's Office in Boston has charged Robert Shannon with one count of aiding and abetting securities fraud in an ongoing investigation that resulted in guilty pleas of some of the men Shannon supervised. According to prosecutors, Shannon, while branch manager of Prudential Securities' Boston office, participated in the scheme that lasted from 1999 through October 2003.

Prosecutors say the scheme, to which former Pru brokers Martin Druffner and Skifter Ajro pleaded guilty, involved using false identities and changing account numbers after their trades were blocked by certain mutual funds. The Securities and Exchange Commission, which has filed a civil complaint against the former brokers, says the scheme netted them around $5 million in 2002 alone.

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