Just a day after agreeing to an unconventional deal to go public, London-based hedge-fund giant GLG Partners LP settled U.S. accusations of illegal short selling, The Wall Street Journal reported Wednesday.
GLG, one of Europe's largest hedge-fund firms, will pay more than $3 million to settle claims of illegal short selling in connection with 14 public offerings, the Securities and Exchange Commission announced. GLG made more than $2 million in illegal profits in four of its managed hedge funds by violating rules that prohibit covering short sales with securities obtained in a public offering, the SEC said, the paper reported.
GLG settled without admitting or denying the allegations. It agreed to a cease-and-desist order and will turn over more than $3.2 million in allegedly ill-gotten gains, interest and penalties, according to the SEC, the paper reported.
"We are pleased to have reached this settlement with the SEC and to put this matter behind us," GLG spokesman Rupert Younger said, according to the paper. "We cooperated fully with the SEC since the moment the trades were brought to our attention, and we have taken a number of steps to ensure that similar technical violations do not occur again."-New York State Society of Certified Public Accountants
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