Citing Gabelli, 2nd Circ. Junks $38M Hedge Fund Fine

Law360, New York (August 8, 2013, 6:30 PM EDT) -- The Second Circuit on Thursday vacated the U.S. Securities and Exchange Commission’s $38 million illegal trading fine against Pentagon Capital Management PLC, saying the amount must be recalculated in light of a U.S. Supreme Court decision limiting the agency’s ability to seek civil penalties.

A three-judge panel ordered a New York federal court to reconsider the fine in the wake of the high court's Feb. 27 ruling in Gabelli v. SEC, which found that the SEC’s five-year window for filing civil enforcement actions seeking penalties begins...
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