SEC Imposes Cease-and-Desist Order Against Wesley Capital Management (Litigation Release)

Sanctions for violations of Rule 105 of Reg M by a fund selling short in connection with an offering. [SL Comment: There is very little discussion of the facts, beyond the minimum. It is interesting to note that the SEC reiterates the statement in a footnote that a person may "wilfully" violate the law even though the person does not know the law; i.e., ignorance of the law is no defence to liability].

Cross Reference(s): Exchange Act Section 21C; Advisers Act Section 203(e); Rule 105 of Reg M(Distributions). For a discussion of Regulation M, see the Broker-Dealer Guide, Trading Chapter.

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