November 12, 2012
Jury Clear Money Fund Founders of Fraud Charges
The SEC lost an important enforcement action against Bruce Bent and his son Bruce Bent II, who were charged with misleading investors in attempts to stop a run on their Reserve Fund in September 2008. The fund "broke the buck." The jury found that two of the Bents' companies violated securities laws, but cleared both Bents of federal securities charges -- the son was found liable on one negligence count. This is yet another example of the regulators' inability to persuade juries to hold individuals responsible for their actions during the financial crisis.
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