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. Last Updated: 07/27/2016

U.S. Concludes Prudential Probe

NEW YORK -- The U.S. government decided not to press further criminal charges against Prudential Securities Inc. in a scandal involving the firm's sale of limited partnership investments.

The U.S. Attorney's office said Wednesday it had concluded its criminal probe into Prudential but left open the option of reopening the investigation if new evidence of wrongdoing arises.

Federal prosecutors in October 1994 filed a criminal complaint charging Prudential Securities with large-scale fraud in its sale of risky limited partnerships to more than 100,000 investors in the 1980s, many of whom lost their money.

Prudential admitted criminal wrongdoing and agreed to deposit $330 million into a special fund created in order to reimburse investors. But Prudential managed to avert a criminal indictment. In return for Prudential's continued cooperation, the government had said it would not prosecute Prudential for a minimum of three years, amounting to a sort of voluntary probation for the brokerage.