Fontana Capital charged with Short Violations
| January 11th, 2011 | ||
| Boston based Fontana Capital has been charged by the SEC for short sale violations that netted $1.1 million in allegedly illegal profits. Industry tracker, HedgeFund.net reports that the SEC’s case centers on Fontana’s shorting of XL Capital, Merrill Lynch and Wells Fargo shares in the latter half of 2008 in violation of SEC’s Rule 105 of Regulation M. Rule 105 prohibits downward pressure trades, such as shorting, prior to a company’s secondary offering of shares. Fontana’s attorney, Lisa Wood, believes this was a technical violation that should be settled with an appropriate level of fines, and rules out manipulative intent. | ||
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News
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