SEC Whacks Short-Sellers for $1.5M

     BOSTON (CN) – Two Florida men will pay $1.5 million to settle SEC charges of illegal short-selling. Peter Grabler will pay $988,000 and Leonard Adams $514,000, the SEC said. Both men live in Boca Raton.

     “These mark the first enforcement actions brought by the SEC under Rule 105 of Regulation M against individuals with no securities industry background,” the SEC said in announcing the settlement. “Rule 105 helps prevent abusive short selling and market manipulation by ensuring that offering prices are set by natural forces of supply and demand for the securities in a secondary offering rather than by manipulative activity.”

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