SEC Sues Lancaster, Hedge-Fund Manager
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The U.S. Securities and Exchange Commission sued Lancaster Investment Partners LP and hedge-fund manager Robert Berlacher for alleged illegal trading that the agency said generated $1.7 million in ill-gotten gains.
Mr. Berlacher’s funds violated trading rules for at least 10 private stock offerings by public companies from 2000 through 2005, the SEC said in a case filed yesterday in federal court in Philadelphia. Lancaster used so-called short shares of borrowed stock in conjunction with private investment in public equity offerings, or PIPEs, to lock in a guaranteed profit, the SEC said. His funds used shares received through each PIPE offering to replace the borrowed stock, a violation of securities rules.