{"id":44071,"date":"2014-09-17T08:18:28","date_gmt":"2014-09-17T12:18:28","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=44071"},"modified":"2014-09-17T08:22:21","modified_gmt":"2014-09-17T12:22:21","slug":"sec-sanctions-19-hedge-fund-advisers-private-equity-firms","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2014\/sec-sanctions-19-hedge-fund-advisers-private-equity-firms.html","title":{"rendered":"SEC Sanctions 19 Hedge Fund Advisers, Private Equity Firms"},"content":{"rendered":"

\"SEC-Headquarters<\/a>New York (HedgeCo.Net) – The\u00a0SEC has issued\u00a0sanctions in an enforcement initiative uncovering certain hedge fund advisers and private equity firms that have illegally participated in an offering of a stock after short selling it during a restricted period.<\/p>\n

The SEC\u00a0last year announced the initiative\u00a0to enhance enforcement of Rule 105 of Regulation M, which is designed to preserve the independent pricing mechanisms of the securities markets and prevent stock price manipulation.\u00a0 Rule 105 typically prohibits firms or individuals from short selling a stock within five business days of participating in an offering for that same stock.<\/p>\n

The SEC\u2019s investigations found that 19 firms and one individual trader charged in these latest cases engaged in short selling of particular stocks shortly before they bought shares from an underwriter, broker, or dealer participating in a follow-on public offering.\u00a0 Each firm and the individual trader have agreed to settle the SEC\u2019s charges and pay a combined total of more than $9 million in disgorgement, interest, and penalties.<\/p>\n

The SEC issued the following orders instituting settled administrative proceedings for Rule 105 violations during the last few years.\u00a0 The orders identify the following monetary sanctions:<\/p>\n

Advent Capital Management<\/a>\u00a0\u2013 The New York-based firm agreed to pay disgorgement of $75,292, prejudgment interest of $3,836.36, and a penalty of $65,000.<\/p>\n

Antipodean Advisors<\/a>\u00a0\u2013 The New York-based firm agreed to pay disgorgement of $27,970, prejudgment interest of $702.83, and a penalty of $65,000.<\/p>\n

BlackRock Institutional Trust Company<\/a>\u00a0\u2013 The California-based firm agreed to pay disgorgement of $1,122,400, prejudgment interest of $22,471.13, and a penalty of $530,479.<\/p>\n

East Side Holdings II<\/a>\u00a0\u2013 The New Jersey-based firm agreed to pay disgorgement of $26,613, prejudgment interest of $397.38, and a penalty of $130,000.<\/p>\n

Explorador Capital Management<\/a>\u00a0\u2013 The Brazil-based firm agreed to pay disgorgement of $83,722, prejudgment interest of $6,936.65, and a penalty of $65,000.<\/p>\n

Formula Growth<\/a>\u00a0\u2013 The Canada-based firm agreed to pay disgorgement of $42,488, prejudgment interest of $4,255.15, and a penalty of $65,000.<\/p>\n

Great Point Partners<\/a>\u00a0\u2013 The Connecticut-based firm agreed to pay disgorgement of $43,068, prejudgment interest of $1,529.13, and a penalty of $65,000.<\/p>\n

Indaba Capital Management<\/a>\u00a0\u2013 The California-based firm agreed to pay disgorgement of $194,797, prejudgment interest of $11,990.79, and a penalty of $97,398.59.<\/p>\n

Ironman Capital Management<\/a>\u00a0\u2013 The Texas-based firm agreed to pay disgorgement of $21,844, prejudgment interest of $382.66, and a penalty of $65,000.<\/p>\n

James C. Parsons<\/a>\u00a0\u2013 An individual trader who lives in New York City agreed to pay disgorgement of $135,531, prejudgment interest of $3,063.90, and a penalty of $67,765.72.<\/p>\n

Midwood Capital Management<\/a>\u00a0\u2013 The Massachusetts-based firm agreed to pay disgorgement of $72,699, prejudgment interest of $5,248.19, and a penalty of $65,000.<\/p>\n

Nob Hill Capital Management<\/a>\u00a0\u2013 The California-based firm made sworn statements to the Commission attesting to a financial condition that makes it unable to pay any penalty.<\/p>\n

RA Capital Management<\/a>\u00a0\u2013 The Massachusetts-based firm agreed to pay disgorgement of $2,646,395.21, prejudgment interest of $73,394.16, and a penalty of $904,570.84.<\/p>\n

Rockwood Investment Management<\/a>\u00a0(also known as Rockwood Partners LP) \u2013 The Connecticut-based firm agreed to pay disgorgement of $156,631, prejudgment interest of $9,222.16, and a penalty of $72,135.23.<\/p>\n

Seawolf Capital<\/a>\u00a0\u2013 The New York-based firm agreed to pay disgorgement of $192,730, prejudgment interest of $7,842.28, and a penalty of $96,365.<\/p>\n

Solus Alternative Asset Management<\/a>\u00a0\u2013 The New York-based firm agreed to pay disgorgement of $39,600, prejudgment interest of $895.22, and a penalty of $65,000.<\/p>\n

SuttonBrook Capital Management<\/a>\u00a0\u2013 The New York-based firm agreed to pay disgorgement of $70,000.<\/p>\n

Troubh Partners<\/a>\u00a0\u2013 The New York-based firm agreed to pay disgorgement of $262,744, prejudgment interest of $39,315.13, and a penalty of $106,651.15.<\/p>\n

Vinci Partners Investimentos<\/a>\u00a0\u2013 The Brazil-based firm agreed to pay disgorgement of $283,480, prejudgment interest of $23,487.08, and a penalty of $141,740.<\/p>\n

Whitebox Advisors<\/a>\u00a0\u2013 The Minnesota-based firm agreed to pay disgorgement of $788,779, prejudgment interest of $48,553.49, and a penalty of $365,592.83.<\/p>\n

\u201cRule 105 is an important preventive measure designed to protect issuers from downward pressure on their stock price in advance of offerings,\u201d said Andrew J. Ceresney, Director of the SEC\u2019s Division of Enforcement. \u00a0\u201cThese charges should remind investment advisers and others of the need for robust and comprehensive compliance programs covering Rule 105 compliance.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – The\u00a0SEC has issued\u00a0sanctions in an enforcement initiative uncovering certain hedge fund advisers and private equity firms that have illegally participated in an offering of a stock after short selling it during a restricted period. The SEC\u00a0last […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-44071","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44071","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=44071"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44071\/revisions"}],"predecessor-version":[{"id":44075,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44071\/revisions\/44075"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=44071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=44071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=44071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}