{"id":38069,"date":"2013-09-18T10:41:03","date_gmt":"2013-09-18T14:41:03","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38069"},"modified":"2013-09-18T10:53:41","modified_gmt":"2013-09-18T14:53:41","slug":"hedge-funds-pay-14-million-to-settle-sec-market-manipulation-charges","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2013\/hedge-funds-pay-14-million-to-settle-sec-market-manipulation-charges.html","title":{"rendered":"Hedge Funds To Pay $14 Million to Settle SEC Market Manipulation Charges"},"content":{"rendered":"

\"SEC\"<\/a>New York (HedgeCo.Net) – In one of the largest crackdowns in the industry, the SEC has taken legal action against 23 firms and hedge fund managers for short selling violations. The funds agreed to pay\u00a0$14.4 million to settle the market manipulation charges, the Wall Street Journal reports.<\/p>\n

\u201cThe benchmark of an effective enforcement program is zero tolerance for any securities law violations, including violations that do not require manipulative intent,\u201d said Andrew J. Ceresney, Co-Director of the SEC\u2019s Division of Enforcement. \u201cThrough this new program of streamlined investigations and resolutions of Rule 105 violations, we are sending the clear message that firms must pay the price for violations while also conserving agency resources.\u201d<\/p>\n

The SEC charged the following firms in this series of settled enforcement actions:<\/strong><\/p>\n

Blackthorn Investment Group<\/strong> \u2013 Agreed to pay disgorgement of $244,378.24, prejudgment interest of $15,829.74, and a penalty of $260,000.00.
\nClaritas Investments Ltd.<\/strong> \u2013 Agreed to pay disgorgement of $73,883.00, prejudgment interest of $5,936.67, and a penalty of $65,000.00.
\nCredentia Group<\/strong> \u2013 Agreed to pay disgorgement of $4,091.00, prejudgment interest of $113.38, and a penalty of $65,000.00.
\nD.E. Shaw & Co<\/strong>. \u2013 Agreed to pay disgorgement of $447,794.00, prejudgment interest of $18,192.37, and a penalty of $201,506.00.
\nDeerfield Management Company<\/strong> \u2013 Agreed to pay disgorgement of $1,273,707.00, prejudgment interest of $19,035.00, and a penalty of $609,482.00.
\nHudson Bay Capital Management<\/strong> \u2013 Agreed to pay disgorgement of $665,674.96, prejudgment interest of $11,661.31, and a penalty of $272,118.00.
\nJGP Global Gest\u00e3o de Recursos<\/strong> \u2013 Agreed to pay disgorgement of $2,537,114.00, prejudgment interest of $129,310.00, and a penalty of $514,000.00.
\nM.S. Junior, Swiss Capital Holdings, and Michael A. Stango<\/strong> \u2013 Agreed to collectively pay disgorgement of $247,039.00, prejudgment interest of $15,565.77, and a penalty of $165,332.00.
\nManikay Partners<\/strong> \u2013 Agreed to pay disgorgement of $1,657,000.00, prejudgment interest of $214,841.31, and a penalty of $679,950.00.
\nMeru Capital Group<\/strong> \u2013 Agreed to pay disgorgement of $262,616.00, prejudgment interest of $4,600.51, and a penalty of $131,296.98.00.
\nMerus Capital Partners<\/strong> \u2013 Agreed to pay disgorgement of $8,402.00, prejudgment interest of $63.65, and a penalty of $65,000.00.
\nOntario Teachers\u2019 Pension Plan Board<\/strong> \u2013 Agreed to pay disgorgement of $144,898.00, prejudgment interest of $11,642.90, and a penalty of $68,295.
\nPan Capital AB<\/strong> \u2013 Agreed to pay disgorgement of $424,593.00, prejudgment interest of $17,249.80, and a penalty of $220,655.00.
\nPEAK6 Capital Managemen<\/strong>t \u2013 Agreed to pay disgorgement of $58,321.00, prejudgment interest of $8,896.89, and a penalty of $65,000.00.
\nPhiladelphia Financial Management of San Francisco<\/strong> \u2013 Agreed to pay disgorgement of $137,524.38, prejudgment interest of $16,919.26, and a penalty of $65,000.00.
\nPolo Capital International Gest\u00e3o de Recursos a\/k\/a Polo Capital Management<\/strong> \u2013 Agreed to pay disgorgement of $191,833.00, prejudgment interest of $14,887.51, and a penalty of $76,000.00.
\nSoundpost Partners<\/strong> \u2013 Agreed to pay disgorgement of $45,135.00, prejudgment interest of $3,180.85, and a penalty of $65,000.00.
\nSouthpoint Capital Advisors<\/strong> \u2013 Agreed to pay disgorgement of $346,568.00, prejudgment interest of $17,695.76, and a penalty of $170,494.00.
\nTalkot Capital<\/strong> \u2013 Agreed to pay disgorgement of $17,640.00, prejudgment interest of $1,897.68, and a penalty of $65,000.00.
\nVollero Beach Capital Partners<\/strong> \u2013 Agreed to pay disgorgement of $594,292, prejudgment interest of $55.171, and a penalty of $214,964.
\nWar Chest Capital Partners<\/strong> \u2013 Agreed to pay disgorgement of $187,036.17, prejudgment interest of $10,533.18, and a penalty of $130,000.00.
\nWestern Standard<\/strong> \u2013 Agreed to pay disgorgement of $44,980.30, prejudgment interest of $1,827.40, and a penalty of $65,000.00.<\/p>\n

“Twenty-two of the firms have agreed to settle the civil charges, though they did not admit or deny wrongdoing. G-2 Trading is fighting the charges.” The Wall Street Journal reported.<\/p>\n

The SEC\u2019s Rule 105 of Regulation M prohibits the short sale of an equity security during a restricted period \u2013 generally five business days before a public offering \u2013 and the purchase of that same security through the offering.\u00a0The firms charged in these cases allegedly bought offered shares from an underwriter, broker, or dealer participating in a follow-on public offering after having sold short the same security during the restricted period.<\/p>\n

Alex Akesson
\nEditor for\u00a0HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a>\u00a0is a premier\u00a0hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – In one of the largest crackdowns in the industry, the SEC has taken legal action against 23 firms and hedge fund managers for short selling violations. The funds agreed to pay\u00a0$14.4 million to settle the market […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,16034,3],"tags":[],"class_list":["post-38069","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedge-fund-rulings","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38069"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38069\/revisions"}],"predecessor-version":[{"id":38071,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38069\/revisions\/38071"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}