Son Of Seabreeze’s Kass Settles SEC Charges

Oct 19 2009 | 1:13pm ET

The son of hedge fund manager Douglas Kass has settled charges that he made unauthorized trades while working at Circle T Partners.

Ethan Kass agreed to pay $50,000 to make the Securities and Exchange Commission allegations go away. The son of the Seabreeze Partners Management chief did not admit or deny the charges.

According to the SEC, Kass, then a processing clerk at the hedge fund run by the late Seth Tobias, made at least 24 unauthorized trades that cost Circle T $8.5 million. The younger Kass hid the trading by leaving it out of the hedge fund’s handwritten trade blotter and deleting or altering the entries from the firm’s portfolio management system. Kass was fired when the trades came to light.

Circle T later sued its prime broker, Banc of America Securities, alleging it should have caught the unauthorized trades. An NASD arbitration panel ruled in the hedge fund’s favor two-and-a-half years ago, but awarded less than $1 million in damages. Circle T had sought more than $30 million.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…