San Antonio Business Journal- The Securities and Exchange Commission filed securities fraud and market manipulation charges against a Wall Street trader who profited from spreading false rumors about The Blackstone Group’s proposed acquisition of Alliance Data System Corp.
The SEC on Thursday said Paul S. Berliner, a former trader at Schottenfeld Group LLC, has settled the charges, without admitting or denying wrongdoing, by agreeing to pay $26,129 in profits and interest and a maximum penalty of $130,000. He also is barred from working at any brokerage.
The SEC alleged that five months ago, Berliner disseminated the false rumor through instant messages to numerous individuals, including traders at brokerage firms and hedge funds. The false rumor also was picked up by the media.
