Friday, June 13, 2008
A federal district court in New Jersery ruled, after a 14-day bench trial, that the SEC did not prove that former Knight Equity Markets CEO Kenneth Pasternak defrauded the firm's customers. The SEC alleged that Pasternak failed to execute customers' orders at the best price and made millions in excessive compensation. Knight is one of the largest market makers in Nasdaq stock. WSJ, Pasternak Cleared of SEC Trading-Fraud Allegations.