SEC Settles Off-Shore Short-Selling Case

Law360, New York (November 7, 2006, 12:00 AM EST) -- A Bermuda company and its lone trader have agreed to pay $1.6 million to settle civil charges of short-selling 176 public offerings from January 2001 through July 2005, the U.S. Securities and Exchange Commission announced Monday.

The SEC sued Solar Group S.A. and James Todd, the trader, in New York district court, claiming that they violated a rule in the Securities Exchange Act that prohibits covering a short sale with money earned from certain public offerings when the short sale occurs before the pricing of the...
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