Drake, Co-Owner Fined For Stock Limit Evasions

Nov 3 2011 | 8:46am ET

Hedge fund Drake Asset Management has been rapped by the Securities and Exchange Commission over allegations that it sought to scam purchase limits on seven public stock offerings.

According to the SEC's complaint, Long Island-based Drake and co-owner Oliver Grace hid their relationship in order to evade the purchase limits on the over-subscribed offerings by seven banks. The hedge fund ran the scheme from 2003 through 2007, the regulator said, earning $610,781 in illicit profits.

Both Drake and Grace have settled the SEC's case, the latter agreeing to pay almost $1 million in disgorgement, prejudgment interest and fines, and the former $175,000 in fines.


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