Web: Hedge Fund Shells Out in Shorting Probe


Hedge Fund Shells Out in Shorting Probe

Bud Burrell, Matthew Goldstein

TheStreet cited by Sanity Check via Wayback, 14 March 2006

A New York hedge fund manager will pay $16 million to settle allegations arising out of a two-year-old investigation into manipulative trading in the market for private placements by small-cap companies.

The penalty agreed to by Jeffrey Thorp is the largest settlement assessed to date by the Securities and Exchange Commission in the investigation into trading abuses in the $18 billion-a-year market for PIPEs, or private investment in public equity.

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