Level Global Settles SEC Trading Violations For $3.2M

Law360, New York (June 30, 2011, 9:38 PM EDT) -- Hedge fund Level Global Investors agreed to pay $3.2 million on Wednesday to settle claims that it short-sold Goldman Sachs Group Inc. and Regions Financial Corp. stock too soon after purchasing it, in violation of federal securities law.

The U.S. Securities and Exchange Commission issued an order saying that Level Global had offered the agreement in anticipation of sanctions, neither admitting nor denying the government's allegations. The fund had been part of the FBI's recent probe of insider trading at hedge funds. After an FBI raid,...
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