SEC charges two California advisory firms with improper short selling

Two California investment advisory firms were charged with improper short selling today by the Securities and Exchange Commission.
JAN 26, 2010
Two California investment advisory firms were charged with improper short selling today by the Securities and Exchange Commission. Palmyra Capital Advisors LLC, which lists $21.7 million in assets in its ADV disclosure form, profited in three of its managed hedge funds by violating short-selling rules, the SEC alleged. The regulator claimed it found that the firm made short sales in 2008 in advance of a public offering by Capital One Financial Corp., resulting in improper profits of $225,500. AGB Partners LLC, which lists $10 million in assets, and its principals, Gregory Bied and Andrew Goldberger, allegedly netted thousands of dollars by shorting in advance of their purchase of stock in a secondary offering, according to the SEC. Both firms agreed to settle the SEC’s charges without admitting or denying its findings. Palmyra Capital consented to be censured and pay more than $330,000 in disgorgement and penalties. AGB Partners, Mr. Bied and Mr. Goldberger consented to be censured and pay more than $50,000 in disgorgement and penalties. An attorney for Palmyra could not be reached for comment. ABB Partners’ attorney, Hardy Callcott of Bingham McCutchen LLP, declined to comment.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.