Reuters – Hedge fund manager Jeffrey Thorp and three New York-based hedge funds he manages have agreed to pay $15.8 million to settle charges they engaged in an illegal trading scheme to evaderegistration requirements with 23 securities offerings commonly referred to as “PIPEs,” U.S. regulators said on Tuesday.
The U.S. Securities and Exchange Commission said the three hedge funds  Langley Partners, North Olmsted Partners and Quantico Partners  and their portfolio manager Thorp, agreed to the settlement without admitting or denying the charges.
An attorney for Thorp did not immediately return a call seeking comment.
Thorp and his funds reaped more than $7 million in ill-gotten gains from the illegal transactions between 2000 and 2002, the SEC’s complaint said.
The penalties include $8.8 million in disgorgement and prejudgment interest and a civil penalty of $7 million.
