Action against Respondent, an investment adviser, for allegedly causing violations of Regulation SHO. According to the SEC, Respondent mismarked sell orders as long, rather than short, which caused its broker to likewise mismark the orders and accept short sale orders without satisfying Regulation SHO’s locate requirement. The SEC also alleges that because Respondent mismarked the orders, it failed to make and keep true and accurate order memoranda and copies of written communications related to orders. Respondent has agreed to pay disgorgement of $229,374, prejudgment interest of $28,041.10, and a civil penalty of $60,000.

SEC Order