Tuesday, June 11, 2013

Feds Win in 'Naked Short' Case


FromWSJ: A Securities and Exchange Commission judge ruled that a former Maryland banker perpetrated a short-selling fraud aided by one of the biggest stock-options brokers in the U.S.  Jonathan Feldman, who was accused by the SEC of trading billions of dollars of stock and options in ways that misled other investors, was found by the judge to have engaged in a practice regulators say has grown more prevalent in recent years: "naked short selling."

The decision makes it more likely the SEC will proceed with other enforcement cases involving similar activity, say people familiar with the SEC's thinking….


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