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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of