SEC bars local broker
A federal securities judge has issued a default judgment that bars a local broker from the brokerage industry. In September, former Prudential Securities broker Martin Druffner pleaded guilty to eight counts of wire and securities fraud in US District Court for his part in a scheme to make deceptive and fraudulent trades in mutual funds.
The Securities and Exchange Commission initiated administrative proceedings seeking to determine whether Druffner should be barred from the brokerage industry. After Druffner failed to respond to notice of the proceedings, Brenda P. Murray, an SEC administrative law judge, issued a ruling last week that found that it "is in the public interest to bar Druffner from associating with any broker, dealer, or investment adviser." Druffner's attorney declined to comment. SEC proceedings against Druffner seeking disgorgement of ill-gotten gains and civil penalties are ongoing. (by Chris Reidy, Globe staff)
