Prudential Fined Nearly $1.1 Million : Securities: Money goes to Idaho investors who suffered losses. Brokerage admits no wrongdoing.

In the latest in a string of setbacks for Prudential Securities, the state of Idaho said Monday that it is requiring the Wall Street brokerage firm to pay nearly $1.1 million in fines and restitution for alleged misdeeds by brokers and supervisors against investors in the state.

Wayne Klein, chief of the Idaho Securities Bureau, said the alleged wrongdoing in the case was completely separate from that covered by the $371-million-plus settlement Prudential reached last October with the Securities and Exchange Commission and state regulators over sales of its limited partnerships.

In still another incident, it was disclosed last week that Prudential had decided to buy back more than $70 million in mortgage investments that were improperly sold to small investors around the country. Prudential confirmed that the risks of the investments had been understated and that customers had suffered losses.

In the Idaho case, Prudential agreed to settle charges that its Boise branch office had defrauded customers from 1987 to 1993. The alleged wrongdoing--which Prudential neither admitted nor denied--included sales of options that were unsuitably risky for customers, trades that customers had never authorized and falsification of records.

Idaho officials also alleged that a Prudential broker in Albany, N.Y., had sold securities in Idaho without a state license.

Prudential agreed to pay $300,000 in fines and $797,518 in restitution to Idaho investors who suffered losses.