SEC charges Sabby Management over short sales
By 
Kyle Brasseur2023-06-13T18:55:00
A New Jersey-based investment adviser and its managing partner were charged by the Securities and Exchange Commission (SEC) with engaging in a fraudulent short selling scheme involving the stocks of nearly a dozen public companies.
Sabby Management and its principal, Hal Mintz, allegedly generated more than $2 million in illegal profits through violative trading practices, including “naked short selling.” In a naked short sale, a seller does not borrow or arrange to borrow securities in time to make delivery to the buyer within the standard settlement period. Sabby and Mintz utilized the tactic to “artificially deflate the price of securities, allowing them to obtain more shares at a cheaper price,” the SEC claimed in a press release Monday.
The agency’s complaint, filed in U.S. District Court for the District of New Jersey, seeks permanent injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News Brief
Insight Partners fined $1.5M over excess fees, conflicts of interest
Insight Venture Management agreed to pay a $1.5 million penalty in settling with the Securities and Exchange Commission for allegedly overcharging management fees and failing to disclose conflicts of interest regarding fee calculations.
-
News BriefGoldman Sachs fined $3M by FINRA over mismarked short sales
Goldman Sachs was fined $3 million by the Financial Industry Regulatory Authority for mismarking nearly 60 million short sell orders as long and related supervision failures.
-
ArticleMorgan Stanley fined $5M for short sales violations
The SEC has hit Morgan Stanley with a cease-and-desist order imposing a censure and a $5 million penalty resulting from violations of Regulation SHO, the agency’s regulations governing short sales.
More from Regulatory Enforcement
-
News BriefCPSC firings spark legal fight as Trump continues ousting independent officials
Three former commissioners of the Consumer Product Safety Commission who were fired by President Donald Trump earlier this month have filed a lawsuit against the government over their dismissal. The move joins many more court battles over Trump’s sudden slashing of government agencies, which some courts have deemed illegal, blocking ...
-
News BriefFTC orders GoDaddy to upgrade cybersecurity defenses following three breaches
The Federal Trade Commission has ordered web hosting company GoDaddy to implement a “robust” information security program following at least three data breaches that the agency said were aided by lax cybersecurity measures.
-
News BriefFTC shuts down student loan firms over deceptive debt relief practices
The U.S. Federal Trade Commission (FTC) took action against a pair of student loan debt relief companies for allegedly deceiving borrowers. The move came despite the Trump administration’s broader efforts to roll back enforcement actions against businesses since taking office.