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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR