Pentagon Capital Requests Chop To $77M SEC Penalty

Law360, New York (March 21, 2012, 6:00 PM EDT) -- Hedge fund manager Pentagon Capital Management PLC urged a judge Wednesday to reduce its $76.8 million penalty in a U.S. Securities and Exchange Commission case alleging illegal late trading, arguing that the penalty is disproportionately high.

British-based Pentagon says an earlier opinion requiring it to pay a $38.4 million disgorgement and another $38.4 million in civil penalties is completely out of step with the fund's alleged gain from the scheme.

The scenario involved Pentagon trading in mutual funds after market close using the daytime price to...
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