2nd Circ. Affirms $2M Ruling Against Colonial Fund

Law360, New York (June 18, 2010, 1:34 PM EDT) -- A federal appeals court has upheld a combined $2 million judgment against New York hedge fund Colonial Fund LLC and its managing member, as well as a $450,000 civil penalty against its head trader, for making illegal trades related to 18 public offerings.

The three-judge panel in the U.S. Court of Appeals for the Second Circuit on Thursday sided with the U.S. Securities and Exchange Commission in its suit against Colonial, managing member Colonial Investment Management LLC and trader Cary G. Brody.

The appeals court found...
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