SEC Tells Short Seller to Give Back $1.4 Million
MANHATTAN (CN) - Revelation Capital Management and its CEO/sole shareholder made $1.4 million from illicit short-selling, the SEC claims in court.
The SEC sued Revelation Capital Management and Christopher P.C. Kuchanny, in Federal Court.
The complaint states: "Revelation Capital and Kuchanny violated Rule 105 in connection with Central Fund of Canada Limited's ... November 2009 offering by short selling Central Fund securities during the restricted period and then purchasing the same securities in Central Fund's offering. Defendants' profits from this illegal trading totaled $1,368,243."
Kuchanny, 37, is a British citizen who lives in Bermuda. His business manages more than $500 million.
The SEC wants him to disgorge, and be restrained, enjoined, and fined.