SEC, Schottenfeld Go To Bat For Settlement Deal

Apr 13 2010 | 9:32am ET

Trading firm Schottenfeld Group and the Securities and Exchange Commission have implored a federal judge to approve the former’s settlement of the latter’s charges related to the Galleon Group insider-trading scandal.

In a joint letter, the two sides sought to assuage U.S. District Judge Jed Rakoff’s demand for more information, detailing the questionable trades and explaining the relationship between the allegedly illicit profits earned by Schottenfeld and the civil penalties imposed by the SEC.

Schottenfeld agreed to pay a $230,238 fine, part of a $763,000 settlement with the regulator. But Rakoff refused to approve that deal last week despite saying it “does not appear unreasonable on its face,” insisting on “further information.”

Schottenfeld settled a second SEC lawsuit two weeks ago, a pact that received U.S. District Judge Richard Sullivan’s acquiesce without further ado.

Three Schottenfeld employees are among the 21 people charges in the Galleon case.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note

Upcoming Events