Defendant Name: AST Investment Services, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Prudential Financial, Inc.
SIC Code: 6311
CUSIP: 74432010

Initial Case Details

Legal Case Name In the Matter of AST Investment Services, Inc. and PGIM Investments LLC
First Document Date 16-Sep-2019
Initial Filing Format Administrative Action
File Number 3-19455
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rules 206(4)-8, 206(4)-7 Advisers Act

Resolutions

First Resolution Date 16-Sep-2019
Headline Total Penalty and Disgorgement $32,632,560

Related Documents:

IA-5346 16-Sep-2019 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On September 16, 2019, the SEC instituted settled administrative and cease and desist proceedings against AST Investment Services, Inc. and PGIM, Investments LLC ("Respondents"). The SEC stated: "These proceedings arise out of two different issues that financially harmed certain funds after they were reorganized in 2006 and converted from being taxed as regulated investment companies (RICs) to partnerships for federal income tax purposes so that Respondents' parent company and its affiliates could take advantage of certain tax benefits."
2019-176 16-Sep-2019 Press Release--Administrative Proceeding
SEC Charges Prudential Subsidiaries For Misleading Funds They Advised, Generating Tens of Millions in Tax Benefits for Prudential
The Commission stated: "The Securities and Exchange Commission today charged two subsidiaries of Prudential Financial Inc. with failing to disclose conflicts of interest and making misleading disclosures to the boards for 94 funds they advised."

Other Defendants in Action:

PGIM Investments LLC