{"id":5863,"date":"2015-10-14T00:00:00","date_gmt":"2015-10-14T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/10\/sec_charges_against_six_firms"},"modified":"2022-05-09T14:45:34","modified_gmt":"2022-05-09T19:45:34","slug":"sec-charges-against-six-firms","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-charges-against-six-firms\/","title":{"rendered":"SEC Charges Against Six Firms For Stock Offering-Related Short Sale Violations Results In Over $2.5M in Sanctions"},"content":{"rendered":"

The Securities and Exchange Commission has filed charges against J.P. Morgan Investment Management Inc.<\/a>, War Chest Capital Partners LLC, Harvest Capital Strategies LLC, Omega Advisors, Inc., Auriga Global Investors, Sociedad de Valores, S.A., and, Sabby Management LLC. All six firms settled the enforcement actions, which allege short selling violations ahead of stock offerings. They will collectively pay over $2.5 million in sanctions.<\/p>\n

Under rule 105, firms are not allowed to participate in public stock offerings after they\u2019ve sold short the same stock. The prohibition is for five days. To do otherwise could lead to illicit profits for the trader while lowering the offering proceeds for a company via the artificial depression of the market price right before that company puts a price on the stock. The SEC contends that all six firms took part in short selling certain stocks right before buying shares from a broker, underwriter, or dealer that participated in a follow-on public offering. <\/p>\n

\nPer the settlements:<\/strong><\/p>\n

\u2022\tAuriga Global Investors will pay disgorgement of nearly $437K, a penalty of over $179K, and a prejudgment interest of over $2K.<\/p>\n

\u2022\tWar Chest Capital Partners will pay disgorgement of over $169K, prejudgment interest of over $22K, and a penalty of $150K.<\/p>\n

\u2022\tHarvest Capital Strategies will pay over 418K of disgorgement, prejudgment interest of $619, and a $65K penalty. <\/p>\n

\u2022\tSabby Management will pay disgorgement of over $184K, prejudgment interest of over $2300, and a penalty of over $91,600.<\/p>\n

\u2022\tJPMorgan Investment Management will pay disgorgement of over $662K, prejudgment interest of over $56,700, and a penalty of over $364K.<\/p>\n

\u2022\tOmega Advisors will pay disgorgement of $68K, prejudgment interest of $686K, and a penalty of $65K.<\/p>\n

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

The Securities and Exchange Commission has filed charges against J.P. Morgan Investment Management Inc., War Chest Capital Partners LLC, Harvest Capital Strategies LLC, Omega Advisors, Inc., Auriga Global Investors, Sociedad de Valores, S.A., and, Sabby Management LLC. All six firms settled the enforcement actions, which allege short selling violations ahead of stock offerings. They will […]<\/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":[3760,3795,3761,3741],"tags":[],"class_list":["post-5863","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","category-securities-fraud"],"yoast_head":"\nSEC Charges Against Six Firms For Stock Offering-Related Short Sale Violations Results In Over $2.5M in Sanctions — Investor Lawyers Blog — October 14, 2015<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission has filed charges against J.P. 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