LAWSUITS NEWS & LEGAL INFORMATION
GLG Partners
Boston, MA: (Jun-26-07) The US Securities and Exchange Commission brought charges against hedge fund GLG Partners, alleging that a probe revealed that the company had earned $2.2 million in illegal profits. Regulators said the firm engaged in manipulative short-selling that helped earn it $2.2 million in illegal profit between July 2003 and July 2005. The agency said GLG violated a key SEC rule 16 times in connection with 14 different public offerings.
In a settlement reached, GLG Partners agreed to pay more than $3.2 million in fines. The settlement came less than two days after GLG Partners, one of Europe's biggest hedge funds with $12 billion in assets, said it planed to go public in the United States. The fund will pay a $500,000 civil penalty plus about $2.2 million in disgorgement and prejudgment interest of $489,455, after it covered short positions with shares it bought in public offerings. The SEC prohibits investors from covering a short sale with securities obtained in a public offering when the short sale occurs within five business days before the pricing of the offering. Further, as part of the agreement, the London-based hedge fund has promised to adopt a written policy, to train new employees and to appoint a senior person to make sure the firm does not breach the SEC's rule 105 Regulation M again. [REUTERS: HEDGE FUND FRAUD]
Published on Jul-1-07
In a settlement reached, GLG Partners agreed to pay more than $3.2 million in fines. The settlement came less than two days after GLG Partners, one of Europe's biggest hedge funds with $12 billion in assets, said it planed to go public in the United States. The fund will pay a $500,000 civil penalty plus about $2.2 million in disgorgement and prejudgment interest of $489,455, after it covered short positions with shares it bought in public offerings. The SEC prohibits investors from covering a short sale with securities obtained in a public offering when the short sale occurs within five business days before the pricing of the offering. Further, as part of the agreement, the London-based hedge fund has promised to adopt a written policy, to train new employees and to appoint a senior person to make sure the firm does not breach the SEC's rule 105 Regulation M again. [
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