Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Tuesday, October 20, 2009

First New York Securities Settles Reg M Charges

The SEC and First New York Securities LLC settled charges that First New York violated Rule 105 of Regulation M with respect to two repeat securities offerings. On both occasions, in connection with the offering, First New York sold securities short within five business days before the pricing of the offering, and then covered the short position, in whole or in part, with shares purchased in the offering. As a result, First New York obtained unlawful profits of $39,544.35.  Based on the above, the Order censures First New York; requires First New York to cease and desist from committing or causing any violations and any future violations of Rule 105 of Regulation M; and orders First New York to pay disgorgement of $39,544.35 and prejudgment interest of $9,464.37, and a civil money penalty in the amount of $20,000. First New York consented to the issuance of the Order without admitting or denying any of the findings in the Order.

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