Investment Adviser Censured for Reg M Violations

The SEC issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 21C of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940 (Order) against Moon Capital Management, LP (Moon Capital). The Order finds that Moon Capital participated in an offering in May 2005, in which it sold securities short during the restricted period before the pricing of the offering and then covered its short positions with securities purchased in the offering. These transactions violated Rule 105 of Regulation M and allowed Moon Capital to earn profits of $88,100 for the fund it advised.  The Order censures Moon Capital, requires it to cease-and-desist from committing or causing any violations, and any future violations, of Rule 105 of Regulation M, requires Moon Capital to disgorge $88,100 plus prejudgment interest of $20,971.67 and pay a $30,000 civil money penalty. Moon Capital consented to the issuance of the Order without admitting or denying any of the Commission's findings