Turning Up The Heat On Prudential
The regulators are making it even hotter for Prudential Securities. In a late-January letter to a federal judge in New Orleans, the Idaho securities commissioner disclosed that he is heading a multistate task force probing alleged improprieties in Pru-dential's sale of limited partnerships. The letter also cites SEC and NASD probes and says the FBI "is conducting a criminal investigation of Prudential's actions in promoting partnerships."
The Idaho regulator is asking the judge to reject as in- adequate a proposed $37 million class-action settlement in- volving $1.46 billion in under-performing Energy Income limited partnerships. "The proposed settlement is a fair one," says a spokesman for Pru Securities.