SEC Says It Can Bring Suit Over Falcone's 'Spiteful' Trades

Law360, New York (February 28, 2013, 7:19 PM EST) -- The U.S. Securities and Exchange Commission can sue Philip Falcone over market activity allegedly designed to spite Goldman Sachs Group Inc. even if the hedge fund founder lost money on them, a commission lawyer told a New York federal judge Thursday.

The SEC has the right to bring suit over market manipulation even when the alleged fraudster loses money and even if the reasons for the market manipulation were spite and anger, not profit, commission lawyer David J. Gottesman told U.S. District Judge Paul Crotty at...
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