Tuesday, 27 January 2015
Last updated 4 hours ago
Dec 22 2005 | 7:47pm ET
Hedge fund manager John Mangan, who was formerly registered as a broker with Friedman, Billings, Ramsey & Co., has been permanently barred from associating with any NASD-registered firm. He has also been ordered to pay a $125,000 fine to settle charges that he deceptively obtained shares in a PIPE transaction, improperly sold the shares short and shared in profits from the shares without obtaining permission from FBR.
NASD found that Mangan wanted to invest in shares in Compudyne through a hedge fund he managed with a partner, so he contacted senior FBR executives to inquire whether he had permission to do so. He was told not invest in the Compudyne PIPE, however, he went ahead and arranged for HLM Securities, an investment advisor owned by Mangan's partner, to buy 80,000 shares in the PIPE.
In settling this matter with NASD, Mangan neither admitted nor denied the charges. NASD's investigation into other individuals and entities involved in the Compudyne PIPE is continuing.
In May, Hilary Shane, a hedge fund manager formerly registered with First New York Securities, was barred and ordered to pay more than $1.45 million in fines and restitution by the NASD and the Securities and Exchange Commission to settle fraud and insider trading charges arising from her purchase and sale of Compudyne PIPE shares.
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…