Defendant Name: AST Investment Services, Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: 2019-176

Document Details

Legal Case Name In the Matter of AST Investment Services, Inc. and PGIM Investments LLC
Document Name SEC Charges Prudential Subsidiaries For Misleading Funds They Advised, Generating Tens of Millions in Tax Benefits for Prudential
Document Date 16-Sep-2019
Document Format Administrative Proceeding
File Number 3-19455
Allegation Type Investment Advisers/Investment Companies
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC
Monetary Penalties:

Disgorgement

Individual:     Shared:     $27,600,000.00
Shared with: PGIM Investments LLC

Civil Penalty

Individual:     Shared:     $5,000,000.00
Shared with: PGIM Investments LLC

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."

Other Defendants in Action:

PGIM Investments LLC