SEC Settles With Trader Over ADS Merger Rumors

Law360 (April 24, 2008, 12:00 AM EDT) -- A Wall Street trader has agreed to pay a $130,000 fine to settle charges by the U.S. Securities and Exchange Commission that he spread false rumors about the planned buyout of Alliance Data Systems Corp. while short selling the stock.

The deal puts to rest charges of securities fraud and market manipulation against former Schottenfeld Group LLC trader Paul Berliner, who neither admitted nor denied the allegations.

In the settled complaint filed in the U.S. District Court for the Southern District of New York, the SEC...
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