Defendant Name: Claritas Investment, Ltd.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Principal Financial Group, Inc.
SIC Code: 6321
CUSIP: 74251V10

Initial Case Details

Legal Case Name In the Matter of Claritas Investments Ltd.
First Document Date 16-Sep-2013
Initial Filing Format Administrative Action
File Number 3-15474
Allegation Type Market Manipulation

Violations Alleged

Other
• Rule 105 of Regulation M Exchange Act

Resolutions

First Resolution Date 16-Sep-2013

Related Documents:

34-70393 16-Sep-2013 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order and Civil Penalty
On September 16, 2013, the SEC instituted settled cease-and-desist proceedings against Claritas Investments Ltd. According to the SEC: "These proceedings arise out of a violation of Rule 105 of Regulation M of the Exchange Act by Claritas, which, at the time of the violation, operated as a Cayman Islands-based asset management firm. Rule 105 prohibits buying an equity security made available through a public offering, conducted on a firm commitment basis, from an underwriter or broker or dealer participating in the offering after having sold short the same security during the restricted period as defined therein.... In February 2011, Claritas bought offered shares from an underwriter or broker or dealer participating in a follow-on public offering after having sold short the same security during the restricted period. This violation resulted in profits of $73,883."
2013-182 17-Sep-2013 Press Release--Administrative Proceeding
SEC Charges 23 Firms With Short Selling Violations in Crackdown on Potential Manipulation in Advance of Stock Offerings
On September 17, 2013, the SEC announced "enforcement actions against 23 firms for short selling violations as the agency increases its focus on preventing firms from improperly participating in public stock offerings after selling short those same stocks." According to the SEC: "The firms charged in these cases allegedly bought offered shares from an underwriter, broker, or dealer participating in a follow-on public offering after having sold short the same security during the restricted period."