Tuesday, July 17, 2012
The SEC announced that two options traders whom the agency charged earlier this year with short selling violations have agreed to pay more than $14.5 million to settle the case against them. According to the SEC, Jeffrey A. Wolfson and Robert A. Wolfson engaged in naked short selling by failing to locate shares involved in short sales and failing to close out the resulting failures to deliver. According to the SEC’s orders settling the administrative proceedings against the Wolfsons, they made illegal naked short sales from July 2006 to July 2007. The Wolfsons made approximately $9.5 million in illegal profits from their naked short selling transactions.