August 6, 2008 / 6:04 PM / 11 years ago

Prudential Financial settles SEC accounting case

WASHINGTON, Aug 6 (Reuters) - Prudential Financial Inc (PRU.N) agreed to settle allegations that the firm improperly reported more than $200 million in income involving reinsurance contracts, securities regulators said on Wednesday.

The Securities and Exchange Commission said Prudential Financial settled the case without admitting or denying any wrongdoing. The company did not pay any monetary penalties.

According to an SEC complaint filed in a federal court in Newark, New Jersey, the contracts had no economic substance and no purpose other than to build up and then draw down an off-balance sheet asset held by General Reinsurance Corp for Prudential’s former property and casualty subsidiaries. General Reinsurance is a Berkshire Hathaway Inc (BRKa.N) unit.

The SEC said Prudential filed inaccurate annual, quarterly and current documents after it became a publicly traded company in 2001.

The company did not have an immediate comment.

The SEC said that the improper accounting practices began in 1997. (Reporting by John Poirier, editing by Gerald E. McCormick)

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