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U.S. SEC fines firm $7.2 mln in record short-selling sanction
March 5, 2014 / 8:45 PM / 4 years ago

U.S. SEC fines firm $7.2 mln in record short-selling sanction

WASHINGTON, March 5 (Reuters) - A New York proprietary trading firm and its owner will pay $7.2 million to settle civil charges in what U.S. regulators said on Wednesday marks the largest fine it ever imposed for certain short-selling violations.

Long Island-based Worldwide Capital Inc and its sole owner, Jeffrey Lynn, are settling the case without admitting or denying the charges, the Securities and Exchange Commission said.

According to the SEC order, Lynn and his firm violated rule 105 of “Regulation M,” which prohibits a trader from shorting stock prior to a public offering, and then subsequently buying that same stock through the offering.

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