Pasternak focused on federal courthouse in Trenton. He and other former Knight SEC sued Pasternak and John Leighton, defending against SEC civil fraud allegations, they stand accused of allowing improper trading. Already sanctioned, NASD fined each $100K for supervisory violations. Case involves Leighton's brother, Joe, former Knight sales trader who regulators said defrauded customers by overcharging them tens of millions of commission dollars. Joe paid more than $4 million to settle civil charges brought by the SEC and NASD.
Knight agreed in 2004 to pay more than $79 million to settle charges related to Joe's actions. NASD arbitration panel concluded Pasternak's response to "red flags of possible misconduct was woefully inadequate." Pasternak and John Leighton, who headed Knight's institutional trading desk, have insisted their actions were proper. Read Star Ledger