In re Aristeia Capital LLC

SEC Release No. 34-64374 / IA-3191

May 2, 2011

The SEC published a settled administrative action against a New York-based hedge fund manager alleged to have violated Rule 105 of Regulation M. The release alleges that the firm, on four occasions, purchased shares from an underwriter or offering participant in a follow-on public offering after having sold the relevant security short during the restricted period. The action resulted in a $400,000 civil penalty and over $1 million in disgorgement.

Cross References

Reg. M, Rule 105