Ex-Hedge Fund Manager Settles With SEC For $1M

Law360, New York (July 8, 2011, 7:51 PM EDT) -- A former hedge fund manager will pay nearly $1 million to settle claims that he violated short-selling rules by participating in public stock offerings after shorting them within a time period restricted by the U.S. Securities and Exchange Commission, the agency said Friday.

Forrest Fontana, sole owner and employee of Boston-based Fontana Capital LLC, has agreed to pay a disgorgement of $816,000, prejudgment interest of $3,600 and a civil penalty of $165,000 to the U.S. Department of the Treasury, the SEC said.

In making the agreement,...
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