Sunday, 1 February 2015
Last updated 1 day ago
Sep 14 2007 | 11:36am ET
Another hedge fund has been caught red handed in an alleged insider-trading scheme involving private investments in public equities, or PIPEs.
The Securities and Exchange Commission has charged King of Prussia, Pa.-based hedge fund Lancaster Investment Partners and hedge fund manager Robert Berlacher with using private stock offerings to cover short positions—a violation of securities law—at least 10 times between 2000 and 2005. The SEC says Lancaster made $1.7 million from the trades.
“These ill-gotten gains inflated Lancaster’s assets under management and performance, which consequently led Berlacher to receive improper performance fees and compensation,” the SEC wrote in its complaint, filed in federal court in Philadelphia.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…