SEC Settles Charges Against Short-Seller

May 9 2008 | 12:20pm ET

The Securities and Exchange Commission has filed a settled civil action against Quogue Capital and Wayne Rothbaum, Quogue's managing member and owner.

The SEC’s complaint alleges that Rothbaum committed multiple violations of a securities rule that prohibits covering a short sale when the short sale occurs during a specific period (usually within five business days) before the pricing of the offering.

Quogue and Rothbaum allegedly violated Rule 105 of Regulation M in connection with purchases of securities in public offerings made by Bioenvision, Geron Corp., Cotherix and Point Therapeutics. The SEC alleges that on each such occasion, Rothbaum sold securities short within five business days before the pricing of public offerings and then covered the short positions with securities purchased in the offering pocketing a total of $782,902 form the trades.

Without admitting or denying the allegations of the complaint, Rothbaum agreed to pay a civil money penalty in the amount of $390,000.

The SEC also instituted settled cease-and-desist and administrative proceedings against Rothbaum, who agreed to the proceedings and paid a disgorgement charge of $782,902 and prejudgment interest of $161,154.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of