Sandell Probed For Alleged Katrina Short-Sales

Nov 2 2006 | 11:46am ET

New York-based Sandell Asset Management is sweating after receiving a Wells notice targeting the firm and several top executives. According to a letter sent to investors, the $7 billion New York hedge fund stands accused of naked short-selling of Louisiana bank Hibernia Corp.’s shares. The alleged short-sales occurred in the aftermath of Hurricane Katrina.

The letter said that the Securities and Exchange Commission “intends to recommend the commencement of proceedings” against Sandell and several executives, reportedly including Sandell founder Thomas Sandell, though the letter did not identify any individuals.

Sandell, in the letter, said it “[disputes] several of the commission’s assertions,” but that it is “continuing to work with the staff the resolve this matter.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...