US charges father of money market funds (Bruce Bent, Sr.) with fraud

[UpInArms]

Source: Reuters

The father of the money market mutual fund -- investor Bruce Bent -- was charged with fraud by U.S. regulators on Tuesday over accusations he deceived investors into believing his flagship fund was safe before it "broke the buck" last year.

The civil charges against the veteran money manager, his son and their investment company come eight months after the Reserve Primary Fund, loaded with Lehman Brothers debt, halted redemptions after the investment bank declared bankruptcy, sparking a run on money-market funds.

<snip>

The fund is being liquidated and its collapse has spurred numerous lawsuits. Its demise has been a stunning turn for Bent, who regulators called "the public face" of the fund and "a longtime advocate of the safety and stability of money market funds."

<snip>

The SEC said that since it was created in 1971, the Primary Fund historically invested in very conservative assets such as government securities and bank certificates of deposit.

But, starting in 2007 and 2008, the fund began to purchase riskier commercial paper issued by financial firms including Lehman, Merrill Lynch and Washington Mutual, with the higher yields paid by these securities generating attractive returns for fund shareholders, the SEC said.

Read more: http://www.reuters.com/article/bondsNews/idUSN0550009220090505?sp=true

---

here's a link to Bent's political donations (buying spree):

http://newsmeat.com/fec/bystate_detail.php?st=NY&last=bent&first=bruce

BENT, BRUCE II
NEW YORK, NY 10014
RESERVE MANAGEMENT CORP./INVESTMENT MCCAIN, JOHN S. (R)
President
MCCAIN-PALIN VICTORY 2008 $1,000
primary 09/07/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair
CLUB FOR GROWTH PAC $5,000
primary 05/22/08
BENT, BRUCE
MANHASSET, NY 11030
THE RESERVE/CHAIRMAN
RESERVE MANAGEMENT CORPORATION POLITICAL COMMITTEE $5,000
primary 04/03/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/CEO WALBERG, TIMOTHY L. (R)
House (MI 07)
WALBERG FOR CONGRESS $2,300
primary 03/31/08
Bent, Bruce
New York, NY 10001 OLLER, THOMAS (RICO) (R)
House (CA 04)
RICO OLLER 2008 $-690
primary 03/29/08
BENT, BRUCE II
NEW YORK, NY 10014
RESERVE MANAGEMENT CORPORATION/VICE
RESERVE MANAGEMENT CORPORATION POLITICAL COMMITTEE $5,000
primary 03/24/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O JENKINS, LOUIS (WOODY) (R)
House (LA 06)
WOODY JENKINS FOR CONGRESS $2,300 03/12/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair JENKINS, LOUIS (WOODY) (R)
House (LA 06)
earmarked via CLUB FOR GROWTH PAC $2,300† 03/11/08
Bent, Bruce R
New York, NY 10001
The Reserve Funds/CEO ROSS, CHARLES EDWIN (R)
House (MS 03)
CHARLIE ROSS FOR CONGRESS $4,600
primary 03/04/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair ROSS, CHARLES EDWIN (R)
House (MS 03)
earmarked via CLUB FOR GROWTH PAC $4,600†
primary 03/03/08
Bent, Bruce R
New York, NY 10001
The Reserve Funds ANDAL, DEAN F (R)
House (CA 11)
CITIZENS FOR ANDAL $2,300
primary 03/02/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O JENKINS, LOUIS (WOODY) (R)
House (LA 06)
WOODY JENKINS FOR CONGRESS $2,300
primary 02/28/08
Bent, Bruce R
New York, NY 10001
The Reserve Funds/CEO ROSS, CHARLES EDWIN (R)
House (MS 03)
CHARLIE ROSS FOR CONGRESS $2,300
primary 02/26/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair JENKINS, LOUIS (WOODY) (R)
House (LA 06)
earmarked via CLUB FOR GROWTH PAC $2,300† 02/25/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/CEO OLLER, THOMAS (RICO) (R)
House (CA 04)
RICO OLLER 2008 $2,300
primary 02/15/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/CEO SCALISE, STEVE MR. (R)
House (LA 01)
SCALISE FOR CONGRESS $2,300 02/11/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair WALBERG, TIMOTHY L. (R)
House (MI 07)
earmarked via CLUB FOR GROWTH PAC $2,300†
general 02/11/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair ANDAL, DEAN F (R)
House (CA 11)
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 02/11/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair ROSS, CHARLES EDWIN (R)
House (MS 03)
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 02/11/08
BENT, BRUCE R
NEW YORK, NY 10001
THE RESERVE FUNDS/CEO PEARCE, STEVE (R)
Senate - NM
PEOPLE FOR PEARCE $2,300
primary 02/09/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair SCALISE, STEVE MR. (R)
House (LA 01)
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 02/06/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair LAMBORN, DOUGLAS (R)
House (CO 05)
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 02/06/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair
CLUB FOR GROWTH PAC $2,300
primary 01/24/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair
CLUB FOR GROWTH PAC $2,300
primary 01/24/08
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O HARRIS, ANDREW P (R)
House (MD 01)
ANDY HARRIS FOR CONGRESS $2,300
primary 12/24/07
Bent, Bruce
New York, NY 10001
The Reserve Fund/CEO SCHWEIKERT, DAVID (R)
House (AZ 05)
DAVID SCHWEIKERT FOR CONGRESS $2,300
primary 12/23/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O SCHWEIKERT, DAVID (R)
House (AZ 05)
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 12/18/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O HARRIS, ANDREW P (R)
House (MD 01)
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 11/02/07
Bent, Bruce R Mr.
New York, NY 10001
The Reserve Funds/CEO BUEHRER, STEVE (R)
House (OH 05)
STEVE BUEHRER FOR CONGRESS $2,300 10/11/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Founder and Chair
CLUB FOR GROWTH PAC $2,300
primary 10/04/07
BENT, BRUCE R
NEW YORK, NY 10001
THE RESERVE FUNDS/CEO SUNUNU, JOHN E (R)
Senate - NH
TEAM SUNUNU $2,300
general 07/17/07
BENT, BRUCE R
NEW YORK, NY 10001
THE RESERVE FUNDS/CEO SUNUNU, JOHN E (R)
Senate - NH
TEAM SUNUNU $2,300
primary 07/17/07
BENT, BRUCE
NEW YORK, NY 10021
THE RESERVE FUNDS/CEO SCHAFFER, ROBERT W (R)
Senate - CO
BOB SCHAFFER FOR US SENATE $-2,300
primary 06/30/07
BENT, BRUCE
NEW YORK, NY 10021
THE RESERVE FUNDS/CEO SCHAFFER, ROBERT W (R)
Senate - CO
BOB SCHAFFER FOR US SENATE $4,600
primary 06/30/07
BENT, BRUCE
NEW YORK, NY 10021
THE RESERVE FUNDS/CEO SCHAFFER, ROBERT W (R)
Senate - CO
BOB SCHAFFER FOR US SENATE $2,300
general 06/30/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O SCHAFFER, ROBERT W (R)
Senate - CO
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 06/25/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O SCHAFFER, ROBERT W (R)
Senate - CO
earmarked via CLUB FOR GROWTH PAC $2,300†
general 06/25/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O SUNUNU, JOHN E (R)
Senate - NH
earmarked via CLUB FOR GROWTH PAC $2,300†
primary 06/25/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O SUNUNU, JOHN E (R)
Senate - NH
earmarked via CLUB FOR GROWTH PAC $2,300†
general 06/25/07
Bent, Bruce
New York, NY 10001
The Reserve Funds/Chief Executive O
CLUB FOR GROWTH PAC $5,000
primary 03/08/07
BENT, BRUCE R
PLANDOME, NY 11030
RESERVE MANAGEMENT CORPORATION/CHAI
RESERVE MANAGEMENT CORPORATION POLITICAL COMMITTEE $5,000
general 12/22/06
BENT, BRUCE II
NEW YORK, NY 10014
RESERVE MANAGEMENT CORPORATION/VICE
RESERVE MANAGEMENT CORPORATION POLITICAL COMMITTEE $5,000
primary 12/22/06
BENT, BRUCE R
PLANDOME, NY 11030
RESERVE MANAGEMENT CORPORATION/CHAI
RESERVE MANAGEMENT CORPORATION POLITICAL COMMITTEE $5,000
primary 12/22/06
BENT, BRUCE II
NEW YORK, NY 10014
RESERVE MANAGEMENT CORPORATION/VICE
RESERVE MANAGEMENT CORPORATION POLITICAL COMMITTEE $5,000
general 12/22/06
BENT, BRUCE MR
NEW YORK, NY 10021
THE RESERVE FUNDS/CEO KYL, JON L (R)
Senate - AZ
JON KYL FOR U S SENATE $2,000
general 10/30/06
Bent, Bruce
New York, NY 10021
The Reserve Funds/Chief Executive O KYL, JON L (R)
Senate - AZ
earmarked via CITIZENS CLUB FOR GROWTH INC PAC $2,000†
general 10/26/06
Bent, Bruce
New York, NY 10021
The Reserve Funds/Chief Executive O PROSPERITY PAC
earmarked via CITIZENS CLUB FOR GROWTH INC PAC $5,000†
general 10/04/06
BENT, BRUCE
NEW YORK, NY 10021
THE RESERVE FUNDS/CEO BOUCHARD, MICHAEL J (R)
Senate - MI
BOUCHARD FOR US SENATE $2,100
general 09/30/06
BENT, BRUCE
NEW YORK, NY 10021
THE RESERVES FUND/CEO MCGAVICK, MICHAEL SEAN (R)
Senate - WA
FRIENDS FOR MIKE MCGAVICK $2,100
general 09/28/06
BENT, BRUCE MR
NEW YORK, NY 10021
THE RESERVE FUNDS/CHIEF EXECUTIVE O STEELE, MICHAEL (R)
Senate - MD
STEELE FOR MARYLAND INC $2,100
general 09/27/06

[valerief]

1. Get Bent!!!! nt

[Ikonoklast]

2. Looks like his friends forgot who he is.

Or will move a finger to save his criminal ass.

[customerserviceguy]

3. And Bernie Madoff started NASDAQ

I guess if you can be some kind of founder muckety-muck, you can Pied Piper all kinds of mice.

[sarcasmo]

4. Another GREEDY republican.

[KoKo]

5. OMG...look at his RW Connections!....Thanks for the post...K&R!

:kick:

[No Elephants]

6. Let's hope he actually pays for his crimes.

[LeftishBrit]

7. Is he really called Bent?

Bent... Madoff (made-off) .. you could hardly invent such names.

[Wednesdays]

8. K&R

:kick: