Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

SEC Continues Crackdown Against "PIPE" Insider Trading

Bruce Carton | October 23, 2008

On October 20, 2008, the SEC announced that it had filed a settled enforcement action alleging insider trading against Brian D. Ladin, a former analyst for a hedge fund called Bonanza Master Fund Ltd. ("Bonanza"), in the U.S. District Court for the District of Columbia. The SEC's complaint alleges that Ladin engaged in insider trading in connection with a 2004 "PIPE" (Wall Street jargon for "private investment in public equity") offering conducted by Radyne Comstream Inc.

The fact pattern of the Ladin "PIPE" insider trading case presents a recurring issue that the SEC is targeting as part of its campaign against insider trading by hedge funds. The typical pattern involves a public company that...

Buy this article for $49, or subscribe to Compliance Week for a month at $149 and get unlimited article access for 30 days.