Carlson Capital agreed to pay more than $2.6 million to the U.S. Treasury to settle charges with the SEC that the hedge fund manager improperly participated in four public stock offerings after selling those same stocks short, according to an SEC news release.
The SEC was launching administrative proceedings on the matter when Carlson offered to settle.
As part of settlement, Carlson agreed to an order that requires the firm to “cease and desist from committing or causing any violations and any future violations” of the SEC’s rules, the news release said.
“We are pleased to resolve this matter and believe that this agreement is in the best interest of the firm and our investors,” said Jonathan Gasthalter, a Carlson spokesman.
The transactions, which all occurred in 2008, involved the stocks of four companies, including Rockwood Holdings Inc. and Wells Fargo & Co., according to the SEC’s order in the case.