Hedge Funds

Three funds settle illegal short-selling charges with SEC


Galleon Capital Management, Oaktree Capital Management and DB Investment Managers have agreed to pay a combined $2.4 million to settle charges made by the U.S. Securities and Exchange Commission that they had engaged in illegal short-selling.

Without admitting or denying the charges, Galleon agreed to pay $2.02 million, the bulk of the fines and disgorgement, Oaktree agreed to pay $345,701 and DB, $33,159.

The payments were commensurate with the profits that the SEC alleged the managers had earned in the disputed trades: Galleon, the SEC complaint said, had collected ill-gotten gains of $1,040,882; Oaktree, $169,773; and DB, $15,585.

According to