A Texas fund manager and the entities he operates have agreed to settle a claim from the US government that they used insider information to make a profit from the sale of private investments in public equities.
The companies and funds owned by Edwin Buchanan Lyon IV will pay more than $700,000 to resolve a lawsuit filed by the Securities and Exchange Commission (SEC).
According to Bloomberg, this will consist of $467,728 in disgorgement, along with a fine totaling $310,288.
Mr Lyon, who is chief investment officer of Gryphon Management Partners, said in a statement that the company has made the payment "after four years of protracted litigation and the dismissal of 36 of the commission's 40 claims based on a previously untested but ultimately flawed theory".
He added that $7 million had initially been offered to the SEC in order to avoid litigation, but this was rejected.
The commission recently filed civil fraud charges against General Electric after the company was accused of including misleading results in its financial reports.
The companies and funds owned by Edwin Buchanan Lyon IV will pay more than $700,000 to resolve a lawsuit filed by the Securities and Exchange Commission (SEC).
According to Bloomberg, this will consist of $467,728 in disgorgement, along with a fine totaling $310,288.
Mr Lyon, who is chief investment officer of Gryphon Management Partners, said in a statement that the company has made the payment "after four years of protracted litigation and the dismissal of 36 of the commission's 40 claims based on a previously untested but ultimately flawed theory".
He added that $7 million had initially been offered to the SEC in order to avoid litigation, but this was rejected.
The commission recently filed civil fraud charges against General Electric after the company was accused of including misleading results in its financial reports.
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