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Ex-Knight Securities Execs Face SEC Charges
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Aug 8, 10:49 PM (ET)
WASHINGTON (AP) - Securities regulators filed civil fraud charges against Kenneth Pasternak, the former chief executive and head of trading at Knight Securities LP, and another former Knight executive, alleging they defrauded the company's institutional customers.
Pasternak and John Leighton, former head of the institutional-sales desk at Knight, received millions of dollars of compensation from "lucrative trading" whose profits far exceeded the industry norm, the Securities and Exchange Commission said. The agency's complaint, filed in federal court in New Jersey, seeks to fine the two men and force them to return their allegedly ill-gotten trading gains.
Knight, now known as Knight Equity Markets, settled last year with the SEC and the National Association of Securities Dealers and agreed to return more than $79 million. The Jersey City, N.J., firm was one of the largest market makers in Nasdaq-listed stocks.
Leighton's brother, Joseph Leighton, a former Knight trader, settled with regulators this spring and agreed to return $1.9 million of gains, pay $1.4 million of interest and penalties, and be barred from the brokerage industry. Knight and Joseph Leighton settled without admitting or denying the allegations of defrauding customers.
BuyTex
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yay, now only 10 gillion more to nab, lol.
Good news, thanks, Ric
HILANDER
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Dumb question but is that NITE on L2's?
BuyTex
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NITE is the MM "division," Knight does all kinda stuff
HILANDER
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Cool, thanks Buytex, by the way, hd KFC for dinner last night. Their chickens weren't chocked.
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