Amaranth Shells Out $717K To Settle SEC Probe

Law360, New York (May 10, 2007, 12:00 AM EDT) -- After losing $6 billion in the largest hedge fund collapse ever, Amaranth Advisors LLC has agreed to fork over $717,000 to put to rest an investigation by the U.S. Securities and Exchange Commission into its allegedly improper use of shares.

On Wednesday, the SEC revealed the settlement, which included a censure against Amaranth in addition to the hefty financial penalty.

The problems date back to November 2004 when Amaranth supposedly began engaging in a series of suspect follow-on offerings, according to the Commission.

During these transactions,...
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