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July 1, 2008

Ex-Knight Execs Cleared

By Editorial Staff

Knight Capital Group's former chief executive and head of institutional sales were cleared of fraud charges in federal court.

Ken Pasternak, who ran Knight from its founding in 1995 to 2002, and John Leighton, head of sales, beat Securities and Exchange Commission charges they defrauded Knight's institutional customers.

The civil case, tried in U.S. District Court in Trenton, wraps up four years of litigation that also saw Knight and some employees settle other charges with the SEC and the NASD (now FINRA).

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