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,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.