Hedge Funds

FTC fines Durus' Scott Sacane $350,000


Two years after Durus Capital Management founder Scott Sacane told investors he had "inadvertently" amassed huge positions in some small biotech companies, he and the Federal Trade Commission have settled charges that Sacane failed to make proper notifications of the purchases.

As part of the settlement announced on September 26, Sacane will pay $350,000 in civil penalties.

In its complaint, the FTC said that between February and June of 2003, Durus violated the Hart-Scott-Rodino Premerger Notification Act, which then required disclosure before the purchase of $50 million of a company's stock. (The threshold has since been raised to $53 million.)