SEC charges trader with market abuse

Paul Berliner settles with the SEC on charges of market manipulation

WASHINGTON, DC – Only weeks after rumours of market abuse surrounded the near collapse of Bear Stearns, US regulator the Securities and Exchange Commission (SEC) has charged a trader with spreading false rumours.

Paul Berliner, a trader for the Schottenfeld group, is charged with spreading false rumours on November 29, 2007. Instant messaging between his trader friends spread the rumour that Blackstone was considering lowering its price for its takeover of Alliance Data Systems (ADS). Blackstone had agreed to acquire ADS for $6.4 billion six months earlier. The false rumours said Blackstone’s initial offer of $81.75 per share would be reduced to $70 due to problems in ADS’ consumer banking division. The rumours reduced ADS’ stock by 17% noon that day.

Berliner has agreed to settle without admitting or denying the SEC allegations. He is required to pay a $130,000 fine and surrender $26,129 made in profits and interest. He is also barred by an SEC order from any association with a broker or dealer.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here