{"id":4360,"date":"2006-12-28T06:59:16","date_gmt":"2006-12-28T06:59:16","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2006\/12\/sec_files_lawsuit_against_hedg"},"modified":"2022-03-28T11:28:40","modified_gmt":"2022-03-28T16:28:40","slug":"sec-files-lawsuit-against-hedg","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-files-lawsuit-against-hedg\/","title":{"rendered":"SEC Files Lawsuit Against Hedge Fund Manager Over Pipe Trading Scheme"},"content":{"rendered":"

The Securities and Exchange Commission recently filed a lawsuit against Edwin Buchanan Lyon, a hedge fund manager, and seven funds known as the “Gryphon Partners” regarding their alleged role involving 35 PIPE (Private Investments in Public Equities) offerings and Canadian short sales. Lyon is the managing partner and chief investment officer of Gryphon.<\/p>\n

A PIPE is the purchase of stock in a company by a mutual fund, investment firm, or other qualified investor at a reduced rate per share for the purpose of raising capital. There are two major kinds of PIPE: traditional and structured. A traditional PIPE is where stock, either common or preferred, is issued at a set price. A structured PIPE issues convertible debt. PIPEs are a popular financing technique because of their relative efficiency in terms of time and cost. A PIPE can offer liquidity to a company in need of funds.<\/p>\n

According to the SEC, the defendants allegedly attempted to “improperly realize more than $6.5 million in ill-gotten gains\u2026 without incurring market risk.” Three of the ways the defendants allegedly did this was to 1) evade registration requirements related to at least 35 PIPE offerings, 2) make material misrepresentations to PIPE issuers, and 3) engage in insider trading.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission recently filed a lawsuit against Edwin Buchanan Lyon, a hedge fund manager, and seven funds known as the “Gryphon Partners” regarding their alleged role involving 35 PIPE (Private Investments in Public Equities) offerings and Canadian short sales. Lyon is the managing partner and chief investment officer of Gryphon. A PIPE […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760],"tags":[],"class_list":["post-4360","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement"],"yoast_head":"\nSEC Files Lawsuit Against Hedge Fund Manager Over Pipe Trading Scheme — Investor Lawyers Blog — December 28, 2006<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission recently filed a lawsuit against Edwin Buchanan Lyon, a hedge fund manager, and seven funds known as the "Gryphon — December 28, 2006\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-files-lawsuit-against-hedg\/\" \/>\n<meta name=\"twitter:card\" 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