Defendant Name: Claritas Investment, Ltd.

Defendant Type: Subsidiary of Public Company

Document Reference: 2013-182

Document Details

Legal Case Name In the Matter of Claritas Investments Ltd.
Document Name SEC Charges 23 Firms With Short Selling Violations in Crackdown on Potential Manipulation in Advance of Stock Offerings
Document Date 17-Sep-2013
Document Format Administrative Proceeding
File Number 3-15474
Allegation Type Market Manipulation
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
None Specified

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."