Saturday, 26 July 2014
Last updated 11 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…