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In one of the largest punitive damage awards of its kind, Prudential Securities Inc. was ordered by an arbitration panel to pay $1 million to an investor in a mutual fund dispute. The case was filed last year against the Prudential Insurance Co. of America unit by Betty Shapiro, 74, a retired Florida housewife. She accused Prudential Securities and broker Doris Edelman of ”churning” her account between 1984 and 1988. Churning is excessive trading to generate brokerage commissions. Edelman allegedly made mutual fund purchases of more than $5.4 million and sales exceeding $4.1 million in 280 transactions, generating over $220,000 in commissions and sales charges.
