MINNETONKA, Minn. (HedgeWorld.com)–Deephaven Capital Management and one of its former employees have consented to Securities and Exchange Commission charges stemming from short selling within 19 different PIPE deals.
Private investment in public equity has been popular in recent years among hedge funds as a way to gain access to securities at a discount to the market price before the offering of shares is publicly announced. Hedge fund activity in the PIPE markets has been the subject of SEC scrutiny for the last couple of years.