Murchinson Ltd: The Securities and Exchange Commission has reached a settlement with the Toronto investment adviser Murchinson regarding short-selling violations


About – Murchinson Ltd

Murchinson Ltd is an Australian mineral exploration company that specializes in the exploration and development of gold, copper, and other base metals. The company was founded in 2004 and is headquartered in Perth, Western Australia.

Murchinson Ltd’s primary focus is on the exploration and development of the Cue Gold Project, located in the Murchison region of Western Australia. The Cue Gold Project is a large-scale gold exploration project that covers an area of over 800 square kilometers. The project is located in a region that has a long history of gold mining, and Murchinson Ltd believes that it has significant potential for the discovery of new gold deposits.

In addition to the Cue Gold Project, Murchinson Ltd also has several other exploration projects in Western Australia. These include the Burnakura Gold Project, the Gabanintha Vanadium Project, and the Blue Specs Zinc Project.

Murchinson Ltd’s exploration activities are focused on identifying and developing new mineral resources that have the potential to generate significant value for its shareholders. The company’s exploration strategy is based on the use of advanced geological and geophysical techniques, as well as the application of modern exploration methods and technologies.

Murchinson Ltd’s management team is made up of experienced mining professionals with a track record of success in the industry. The company is led by Executive Chairman Paul Farrow, who has over 25 years of experience in the mining industry, including senior management roles at BHP Billiton and Newcrest Mining.

Canadian investment firm Murchinson Ltd. is accused of short selling violations

The Canadian investment firm Murchinson Ltd. has been accused of breaking several rules regarding short selling by the Securities and Exchange Commission (SEC), which is the regulatory body for financial services in the United States.

The investment advisory company, its principal Marc Bistricer, and its trader Paul Zogala have been charged with violating Regulation SHO. This regulation seeks to protect the US market from uncovered short selling and other illegal trading practices. The charges against the investment advisory company, its principal Marc Bistricer, and its trader Paul Zogala relate to this violation.

The US regulator stated that the company and the two respondents had provided erroneous order marking information on orders of a hedge fund client, marking trades as “long” when they should have been marked as short sales, which is a violation of Regulation SHO. This was done in order to circumvent the requirements of Regulation SHO.

Between June 2016 and October 2017, this was done for hundreds of different sale orders. As a result of the respondents’ provision of inaccurate information, the executing broker for the hedge fund was unable to borrow or locate shares in advance of the execution of the sales.

Murchinson and Bistricer also reached a settlement regarding allegations that they were responsible for the hedge fund engaging in dealer activity without first registering with the SEC. This was a violation of the Securities and Exchange Act of 1934’s requirements for dealer registration.

As part of the settlement, Murchinson Ltd. and Bistricer agreed to disgorge (repay) a total of US$7,000,000 in profits that had been obtained through the use of unlawful business practices, in addition to paying US$1,078,183 in pre-judgment interest.

Murchinson has consented to pay a penalty of $800,000 in United States dollars, while Bistricer and Zogala will pay penalties of $75,000 and $25,000 respectively.

Murchison and Bistricer also reached an agreement on a course of action that will ensure continued compliance with the SHO Regulation.

In response to questions from SFT, a spokesperson for Murchinson stated, “We are pleased to have resolved this highly technical matter.”

After making contact with SFT, the company’s spokesperson refused to provide any further explanation as to why this was a “highly technical matter” or why the company did not take the necessary precautions to prevent these regulatory violations.

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