The SEC plans to ask a federal judge for a new trial against Bruce Bent Sr. and Bruce Bent II, according to the Wall Street Journal. In November, the Bents were cleared of fraud charges for their involvement in the collapse of the Reserve Primary Fund. The SEC had alleged that the Bents violated federal securities laws by making misleading statements to the SEC, investors and trustees in the days leading up to the collapse of the fund. The SEC is asking the court to retry two specific claims where, to find the Bents guilty, the jury first would have had to find proof that investors were buying fund shares during the two days before the fund broke the buck. After the trial, jurors told the Wall Street Journal that because there wasn’t enough evidence to prove the purchases, they couldn’t establish a basis for fraud on those two claims.
Briefs are scheduled to be filed on December 21. If the Judge rules in favor of the SEC, a new trial would begin.