SEC Fines Offshore Hedge Fund For Illegal Short Sales

Sep 30 2008 | 11:39am ET

The Securities and Exchange Commission has fined an offshore hedge fund for illegal short-selling of 18 companies.

The culprit, Victoire Finance Capital, is based in New York and was founded in 2003. The firm serves as the investment adviser to Victoire Finance et Gestion, a Netherlands Antilles-based private offshore hedge fund. According to the SEC, from February 2004 until August 2005, the fund sold short securities of eighteen issuers including, Wynn Resorts and Weyerhaeuser Co., realizing profits of $168,139.

Most of the transactions followed the same general pattern: VFC sold securities short either the day of, or the day before, the pricing of the public offering and then covered all or part of the short position with shares that it purchased in the offering, the SEC says.

The firm has been ordered to pay disgorgement of $168,139 and prejudgment interest of $132,491.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note