NY Firm To Pay $7.2M In Biggest-Ever Short-Selling Sanction

Law360, Los Angeles (March 5, 2014, 8:17 PM EST) -- A New York proprietary trading firm and its owner have agreed to pay $7.2 million to settle civil charges that they engaged in improper short-selling, marking the biggest-ever monetary sanction for such violations, federal regulators said Wednesday.

The U.S. Securities and Exchange Commission imposed a cease-and-desist order against Worldwide Capital Inc. and its owner and president, Jeffrey W. Lynn, for violating Regulation M of the Securities Exchange Act through their improper purchases of stock in companies against which they had previously bet.

Between Oct. 31, 2007,...
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