Ontario Teachers' Pension Plan, Toronto, is one of 22 investment bodies settling enforcement actions related to short selling, the SEC announced Tuesday.
Other firms include D.E. Shaw & Co., Hudson Bay Capital Management and Southpoint Capital Advisors.
One other firm is litigating the SEC action.
The firms, including the investment arm of the C$129.5 billion (US$125 billion) Ontario Teachers fund, allegedly bought offered shares from an underwriter, broker or dealer participating in a follow-on public offering after having sold short the same security during the restricted period, which is prohibited under SEC regulations.
Andrew J. Ceresney, co-director of the Securities and Exchange Commission's enforcement division, said in a statement that the sweep was part of an increased investigative focus on short selling, even if the violations do not involve manipulative intent. “We are sending the clear message that firms must pay the price for violations while also conserving agency resources,” Mr. Ceresney said.
The 22 settlements involve $14.4 million in monetary sanctions, which include return of profits, interest and penalties. Ontario Teachers agreed to pay $224,836, while D.E. Shaw will pay $667,492, Hudson Bay will pay $949,454 and Southpoint Capital will pay $534,758.
Spokesmen for D.E. Shaw and Hudson Bay Capital Management declined to comment, while calls to the other firms were not returned at press time.
