SEC charges two California advisory firms with improper short selling
Two California investment advisory firms were charged with improper short selling today by the Securities and Exchange Commission.
Two California investment advisory firms were charged with improper short selling today by the Securities and Exchange Commission.
Palmyra Capital Advisors LLC, which lists $21.7 million in assets in its ADV disclosure form, profited in three of its managed hedge funds by violating short-selling rules, the SEC alleged. The regulator claimed it found that the firm made short sales in 2008 in advance of a public offering by Capital One Financial Corp., resulting in improper profits of $225,500.
AGB Partners LLC, which lists $10 million in assets, and its principals, Gregory Bied and Andrew Goldberger, allegedly netted thousands of dollars by shorting in advance of their purchase of stock in a secondary offering, according to the SEC.
Both firms agreed to settle the SEC’s charges without admitting or denying its findings.
Palmyra Capital consented to be censured and pay more than $330,000 in disgorgement and penalties. AGB Partners, Mr. Bied and Mr. Goldberger consented to be censured and pay more than $50,000 in disgorgement and penalties.
An attorney for Palmyra could not be reached for comment. ABB Partners’ attorney, Hardy Callcott of Bingham McCutchen LLP, declined to comment.
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