GLG Fined For Inflated Valuation

Dec 13 2013 | 5:30pm ET

GLG Partners has agreed to pay US$9 million to settle claims that it inflated the value of a stock purchased by former star manager Greg Coffey.

According to the Securities and Exchange Commission, the London-based firm, part of the Man Group, overvalued a coal-mining stock, earning it $7.8 million in extra fees. The SEC did not identify the stock, but Bloomberg News reports it was Sibanthracite, one of the last names Coffey purchased before resigning from GLG in 2008. The holding wound up in an illiquid side-pocket GLG set up during the financial crisis.

"Investors depend upon fund advisers to have proper controls in place to ensure that valuations and fees are not inflated," the SEC's Antonia Chion said.

In addition to reimbursing investors the $7.8 million, GLG will pay a $750,000 fine.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

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.