Money market pioneer Bruce Bent cleared of SEC fraud charges
NEW YORK (Reuters) - Money market pioneer Bruce Bent and his son on Monday were cleared of civil fraud charges that they misled investors in the early days of the 2008 financial crisis, a family spokesman said.
The Manhattan federal jury's verdict is a blow to U.S. securities regulators in one of the few civil cases accusing individuals on Wall Street of wrongdoing during the crisis.
Bent's son, Bruce Bent II, was found liable on one negligence claim, according to the family spokesman, Mark Arena. Both men were cleared of violating civil securities laws, the spokesman said.
The U.S. Securities and Exchange Commission had accused Bruce Bent and Bruce Bent II of lying to investors and fund trustees in attempts to stop a run on their Reserve Fund in September 2008, as financial markets were roiled in the wake of the bankruptcy of Lehman Brothers.
At the trial, a lawyer for the Bents argued that the men were acting in good faith and said the funds had fallen victim to the economic maelstrom of September 2008.
The SEC was closed for Veterans Day and a spokesman could not be immediately reached for comment.
(Reporting By Basil Katz and Sarah Lynch; Editing by Martha Graybow)
- Tweet this
- Share this
- Digg this
- British Muslims urge cooperation in Foley murder hunt
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- Insight - As Ukraine forces gain in east, focus of German diplomacy shifts
- US STOCKS-Wall St to open up after jobless claims data; Jackson Hole ahead
- Landslides hit Japan's Hiroshima, killing at least 36 |
Government officials painted an upbeat picture for the economy on Thursday as it struggles to emerge from the longest spell of sub-par growth in decades and promised to tighten up risk management at the country's dominant state banks. Full Article