Trader to Pay $1 Million for Short Selling Violations


An SEC investigation found that Andrew L. Evans through his firm Maritime Asset Management violated an anti-manipulation provision of the federal securities laws known as Rule 105 on nearly a dozen occasions. Evans has agreed to pay more than $1 million to settle charges.

“Evans repeatedly gamed the system by short selling shares that he knew he could later obtain at a lower price,” said Jina L. Choi, Director of the SEC’s San Francisco Regional Office. “Rule 105 was specifically designed to prevent unfair and manipulative trading that erodes pricing integrity and the ability of issuers to effectively raise capital.”

According to the SEC’s complaint, Evans’s short selling violations occurred from December 2010 to May 2012.

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