Thursday, 24 July 2014
Last updated 40 min ago
Jul 11 2011 | 11:35am ET
Defunct hedge fund Fontana Capital has settled Securities and Exchange Commission charges that it illegally short-sold three financial stocks.
Boston-based Fontana, led by former SAC Capital Advisors trader Forrest Fontana, agreed to pay more than $900,000 without admitting or denying the charges. According to the SEC, the hedge fund earned more than $800,000 in illicit profits three years ago short-selling the three stocks within five days of a public offering in which Fontana participated. The SEC's Rule 105 prohibits such trades to prevent market manipulation.
The SEC had accused Fontana of making more than $1 million on the trades in Merrill Lynch, XL Capital and Wells Fargo securities in January. At the time, Fontana's lawyer called the violations "isolated, inadvertent, technical."
Fontana ceased managing outside money last year.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…