{"id":39422,"date":"2013-12-05T11:56:21","date_gmt":"2013-12-05T16:56:21","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=39422"},"modified":"2013-12-05T17:05:43","modified_gmt":"2013-12-05T22:05:43","slug":"miami-based-trader-carges-with-short-selling-violations","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2013\/miami-based-trader-carges-with-short-selling-violations.html","title":{"rendered":"SEC Charges Miami-Based Trader With Insider Trading and Short Selling Violations"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/12\/images-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-39423\" alt=\"images (1)\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2013\/12\/images-1.jpg\" width=\"183\" height=\"275\" \/><\/a>New York (HedgeCo.Net) &#8211; A Miami-based trader has been caught red handed with insider trading information in a large Chinese company.\u00a0Charles Raymond Langston III was also caught\u00a0conducting illegal short sales in the securities of three other companies.<\/p>\n<p>\u201cLangston agreed to keep confidential the information he learned from AutoChina\u2019s placement agent and abstain from trading on it. Yet he chose to place personal greed ahead of the integrity of the securities markets,\u201d said Eric I. Bustillo, director of the SEC\u2019s Miami Regional Office.<\/p>\n<p>The SEC alleges that Langston learned confidential information in advance of a public announcement that significantly decreased the value of AutoChina International\u2019s stock. Langston was solicited by placement agents to invest in a secondary offering of AutoChina stock. Despite agreeing to keep information confidential and not trade on it, he promptly sold short 29,000 shares of AutoChina stock in advance of the company\u2019s public announcement that it had completed the secondary offering. To avoid detection, Langston made the trades through an entity he owned using a different broker and different account than he used to purchase shares in AutoChina\u2019s initial offering. Langston made $193,108 in illegal profits by trading on the inside information.<\/p>\n<p>\u201cDuring restricted periods, Langston and his companies executed short sales that gamed the system and resulted in illegal profits,\u201d said Glenn S. Gordon, associate director for enforcement in the SEC\u2019s Miami Regional Office. \u201cThe SEC is resolutely committed to pursuing those who violate Rule 105.\u201d<\/p>\n<p>Langston has agreed to settle the insider trading charges by paying disgorgement of $193,108, prejudgment interest of $22,204, and a penalty of $193,108.<\/p>\n<p>Editing by Alex Akesson<br \/>\nFor\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; A Miami-based trader has been caught red handed with insider trading information in a large Chinese company.\u00a0Charles Raymond Langston III was also caught\u00a0conducting illegal short sales in the securities of three other companies. \u201cLangston agreed to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-39422","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39422","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=39422"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39422\/revisions"}],"predecessor-version":[{"id":39432,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/39422\/revisions\/39432"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=39422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=39422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=39422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}