The Securities and Exchange Commission (SEC) has fined Toronto-based Anson Advisors for violating its rules relating to short selling of securities. For those that are not familiar with the SEC, they are an independent agency of the United States federal government with the primary purpose of enforcing the law against market manipulation. The SEC ruled that Anson Advisors Inc (AAI) purchased equities for private fund clients through three public offerings, having previously engaged in short sales of the same stocks shortly beforehand. This action violated SEC Rule 105 of Regulation M under the Securities Exchange Act of 1934 which prohibits short selling of an equity during a restricted period — typically five business days prior to a covered public offering — and then subsequent buying the same security in the public offer during the restricted period. AAI has agreed to cease and desist from committing or causing violations under Rule 105, without admitting or denying the conclusions of the SEC order. It will pay US$2,469,109.11 in disgorgement, prejudgment interest of US$261,285.20, and a civil penalty of US$600,000. It is great to see a regulatory body being tough on malpractices in the industry and we will continue to fight for the overall well-being of free trade public markets. If you want to read the article, you can click the button below. Sincerely, Terry Lynch Founder, Save Canadian Mining |