Monday, 27 February 2017
Last updated 2 min ago
Jun 27 2007 | 2:55pm ET
The Securities and Exchange Commission has settled enforcement actions against London-based hedge fund GLG Partners for illegal short-selling in connection with 14 public offerings.
During a two-year period, GLG made more than $2.2 million in illegal profits in four of its managed hedge funds by committing multiple violations of an SEC rule designed to prevent manipulative short selling by covering certain short sales with securities obtained in a public offering.
“Foreign-based hedge funds that trade on the U.S. markets cannot turn a blind eye to compliance with the U.S. federal securities laws,” said Antonia Chion, associate director of the SEC’s Division of Enforcement.
Without admitting or denying the findings, GLG agreed to a cease-and-desist order and payment of more than $3.2 million in disgorgement, prejudgment interest, and penalties.