Hedge Funds

Deephaven parent Knight to pay $25.5m in fines and penalties

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Deephaven Capital Management parent Knight Securities will begin paying some $25.5 million in connection with charges of fraudulent trading, according to the Securities and Exchange Commission.

The SEC reports that investors in a will be getting a prejudgment amount in excess of $13 million while Knight will be paying out another $25.5 million in civil fines related to the charges. The payments are to be distributed to investors through the firm of Heffler, Radetich & Saitta, L.L.P.

Late last year, Knight first agreed to pay the disgorgement as part of a settlement over charges that hedge fund and other brokerage