Carlson Capital To Shell Out $2.7M Over Short-Selling

Law360, New York (September 23, 2010, 6:58 PM EDT) -- Hedge fund adviser Carlson Capital LP has agreed to pay nearly $2.7 million to settle claims by the U.S. Securities and Exchange Commission that it improperly took part in public stock offerings after selling the same stocks short.

Dallas-based Carlson violated an SEC rule aimed at curtailing stock manipulation on four different occasions, and also had weak institutional policies that could not prevent the firm from participating in certain prohibited offerings, the regulator said Thursday.

The four trades were made between late 2007 and mid-2009, Reuters...
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