Pentagon To Wind Down Funds, Expects SEC Suit

Law360, New York (March 28, 2008, 12:00 AM EDT) -- Pentagon Capital Management Plc is planning to liquidate its funds after learning that the U.S. Securities and Exchange Commission will probably bring civil litigation against it over allegations related to market timing.

The London-based investment adviser said the move is geared toward protecting investors.

On Friday, a Pentagon Capital spokesman told Law360 that the firm would wind down its funds. He said that fighting the expected charges without taking that step might cause “unrest and jitters” among investors, lenders and counterparties.

The Pentagon Capital spokesman cited...
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