Carlson Settles Short-Selling Charges

Sep 24 2010 | 1:10pm ET

Hedge fund Carlson Capital has settled charges that it violated short-selling rules governing public stock offerings.

The Dallas-based hedge fund, without admitting or denying the Securities and Exchange Commission allegations, agreed to pay $2.7 million to settle the charges, including $2.3 million in disgorgement. According to the SEC, the hedge fund four times violated its “antimanipulation” Rule 105, which bans investors with a short interest in a stock five days before an offering from participating in that offering.

The SEC also charged the firm with have “insufficient” preventative policies.

In addition to paying the fine, Carlson accept a censure and an order barring it from further violations of Rule 105.

“Investment advisers must recognize that combined trading by different portfolio managers can still constitute a clear violation of Rule 105 when short selling takes place during a restricted period," said SEC associate enforcement director Antonia Chion. "This is true even when the portfolio managers have different investment approaches and generally make their own trading decisions.”


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.