District Court Dismisses Action Against GSC Employee and Employee Agrees To Waive and Release the SEC

The SEC brought charges against Edward S. Steffelin, the GSC employee who was in charge of the team responsible for selecting the portfolio for Squared. Steffelin permitted Magnetar to select and short collateral and reviewed and edited the term sheet and pitch book before those materials were provided to investors.

The SEC’s complaint charges Steffelin with violations of Sections 17(a)(2) and (3) of the Securities Act and Section 206(2) of the Investment Advisers Act of 1940. Steffelin agreed to waive and release the Commission from all claims.

View release in full here (links externally to SEC website).