Scott Friestad, Associate Director of the Securities and Exchange Commission’s Enforcement Division, announced in November 2007 that trading abuse cases would be among the top enforcement initiatives pursued by its recently launched Hedge Fund Working Group (HFWG) during 2008. Friestad defined “trade abuse cases” to include insider trading, Private Investment in Public Equity (PIPE) misusages and cases involving improper short sales under Regulation M. This Alert provides a detailed examination of recent enforcement proceedings involving each of these identified areas and underscores the need for hedge funds – both registered and unregistered – to adopt sound internal controls and compliance testing during an era of heightened regulatory scrutiny.

Click on the PDF link above to read the full alert.

Source: Hedge Fund Alert
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