The Company expects that unless it can reach agreement with a third party to purchase the assets of the Company or to provide financing in the next 7 to 10 days, the holders of the Debentures will either exercise their rights under the Security Agreement or force the Company into an involuntary bankruptcy proceeding.
LET'S SEE WHICH WAY IT WILL TAKE NEXT WEEK.
Posts: 4112 | Registered: Jun 2006
| IP: Logged |
WASHINGTON, Jan 4 (Reuters) - A former portfolio manager for a New York-based hedge fund agreed to pay a $110,000 civil penalty to settle charges of improper trading involving three unregistered securities offerings, U.S. regulators said on Thursday.
The U.S. Securities and Exchange Commission said it filed antifraud charges against Joseph Spiegel, who worked at Spinner Asset Management LLC, an adviser to Spinner Global Technology Fund Ltd, a $200-million hedge fund.
The case is the latest involving Private Investment in Public Equity offerings, also known as "PIPE." In a deal, an underwriter sells a company's restricted shares, while the company agrees to file paperwork with regulators allowing investors to resell those shares to the public.
Spiegel agreed to settle the allegations without admitting or denying any wrongdoing, and he was barred from associating with an investment adviser for at least three years, the SEC said.
His attorney declined to comment.
According to the SEC complaint, Spiegel agreed to invest in three PIPE transactions and then shorted the securities -- betting that the stock price would drop -- through a broker-dealer in Canada.
The SEC said Spiegel violated securities laws by being on both sides of the trading positions using the same PIPE securities.
The fund made $361,437 in profit resulting from these actions and he also made materially false representations to the companies to induce them to sell securities to the hedge fund, the SEC said.
The securities were issued in 2002 by Hypercom Corp. (HYC.N: Quote, Profile , Research), Novatel Wireless Inc. (NVTL.O: Quote, Profile , Research) and Tripath Technology Inc. (TRPHE.OB: Quote, Profile , Research), according to the SEC's civil complaint.
Spiegel's case comes a week after the SEC filed charges against hedge fund manager John Mangan, who was accused of insider trading using a PIPE deal. Mangan said the SEC's case is completely unwarranted by the facts and he would be cleared.
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Big Grin]](biggrin.gif)
