Judge Rules Against SEC In Securities Fraud Case

Law360, New York (June 26, 2008, 12:00 AM EDT) -- A federal judge has found that the U.S. Securities and Exchange Commission failed to prove that two former executives of broker-dealer firm Knight Trading Group violated any securities laws.

The SEC first filed the case against Kenneth D. Pasternak, Knight's former chief executive and chairman, and John P. Leighton, the former head of Knight's institutional sales desk, in 2005.

The case alleged the two had participated in a pattern of securities fraud committed by Leighton's brother Joseph, one of the company's most prolific sales traders, and...
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