Securities Law Prof Blog

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

Tuesday, October 20, 2009

Perceptive Advisors Settles SEC Charges of Reg M Violations

The SEC and Perceptive Advisors LLC settled charges that from January 2005 through December 2005, Perceptive Advisors violated Rule 105 of Regulation M with respect to five repeat securities offerings. In each case, Perceptive Advisors 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, Perceptive obtained unlawful profits of $245,902.34.  Based on the above, the Order censures Perceptive Advisors; requires Perceptive Advisors to cease and desist from committing or causing any violations and any future violations of Rule 105 of Regulation M; and orders Perceptive Advisors to pay disgorgement of $245,902.34 plus prejudgment interest of $68,852.92, and a civil money penalty in the amount of $125,000. Perceptive has consented to the issuance of the Order without admitting or denying any of the findings in the Order

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