Wednesday, May 18, 2005
Another SEC PIPEs Enforcement Case
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Printed from NewYorkBusiness.com
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Hedge fund manager fined for insider trading
May 18, 2005
A former hedge fund manager for First New York Securities was ordered to pay $1.45 million to settle fraud and insider trading charges by the National Association of Securities Dealers and the Securities and Exchange Commission related to a private placement transaction.
NASD permanently barred the manager, Hilary Shane, from working with any of its registered firms, while the SEC suspended her for one year from the investment advisory business.
Regulators charged Ms. Shane with insider trading, saying she sold short Compudyne Corp. stock in 2001 before the public announcement of a private investment in public equity, or PIPE, transaction that raised more than $29 million. Regulators said Ms. Shane, who did not admit any wrongdoing, made $1.13 million from the illegal activity.
PIPE shares need to be registered with the SEC before investors can sell them on the open market.
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Printed from NewYorkBusiness.com
--------------------------------------------------------------------------------
Hedge fund manager fined for insider trading
May 18, 2005
A former hedge fund manager for First New York Securities was ordered to pay $1.45 million to settle fraud and insider trading charges by the National Association of Securities Dealers and the Securities and Exchange Commission related to a private placement transaction.
NASD permanently barred the manager, Hilary Shane, from working with any of its registered firms, while the SEC suspended her for one year from the investment advisory business.
Regulators charged Ms. Shane with insider trading, saying she sold short Compudyne Corp. stock in 2001 before the public announcement of a private investment in public equity, or PIPE, transaction that raised more than $29 million. Regulators said Ms. Shane, who did not admit any wrongdoing, made $1.13 million from the illegal activity.
PIPE shares need to be registered with the SEC before investors can sell them on the open market.
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# posted by Tom @ 4:52 PM 
