SEC Charges Hedge Fund for Repeat Offense

A little-known firm has been accused of violating the SEC’s short-selling rules for the second time.

Illustration by II

Illustration by II

A small hedge fund has been accused by regulators of violating short-selling rules for the second time in eight years.

The Securities and Exchange Commission charged Sabby Management and managing partner Hal Mintz with fraud, in what it called “a long-running scheme involving misrepresentations and violations of rules for short-selling and order making,” and other trading violations that generated more than $2 million in illegal profits.

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