SEC Fines Trader for Regulation M Violations

The SEC fined a trader residing in Canada for shorting U.S. stocks in companies that planned follow-on offerings, and for improperly buying shares in the follow-on offerings afterward.

An SEC investigation found that the trader, acting through his firm, Maritime Asset Management, violated anti-manipulation provisions of Rule 105 of Regulation M by short selling an equity security during a restricted period, and then purchasing that same security through the offering.

See: SEC Complaint.