Bloomberg – A Dallas hedge-fund manager and entities he owns agreed to pay $788,016 to settle U.S. government claims they made more than $500,000 by shorting shares of companies while using inside information that issuers would conduct private placements.

Edwin Buchanan Lyon IV, 42, and his companies and funds agreed to disgorge $467,728, including interest, and pay a $310,288 fine to resolve the lawsuit filed by the U.S. Securities and Exchange Commission. Lyon is managing partner and chief investment officer of Gryphon Management Partners LP.

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Tags: buchanan, chief-investment-officer, entities, government claims, hedge-fund-manager, issuers, lyon, management partners, private-placements, securities-and-exchange, securities-and-exchange-commission

Reuters – Investment adviser MAG Capital and its owner settled U.S. regulators’ claims that it took warrants from three hedge funds it advised without compensating them, the U.S. Securities and Exchange Commission said on Tuesday.

The Los Angeles-based investment adviser and owner David Firestone, without admitting or denying the SEC’s allegations, will pay $100,000 and $50,000, respectively, to settle the SEC’s complaint.

On 44 separate occasions, between 2003 and 2006, MAG took warrants from its clients without compensating their funds for them, the SEC said.

According to the SEC, MAG’s hedge fund clients made investments in so-called private investment in public equity (PIPE) transactions.

The PIPE transactions included warrants and other securities. The hedge funds paid for the warrants as part of the bundle of securities sold by the issuers in the transaction.

However, MAG took a portion of the warrants in each transaction and did not compensate the hedge funds for the warrants it took, the SEC alleged.

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Tags: allegations, david firestone, investment-adviser, investments, issuers, occasions, private investment, public equity, regulators, reuters, securities-and-exchange, securities-and-exchange-commission, warrants