S.E.C.
ORG
S.E.C S.E.C.
The S.E.C. says, it is illegal to use the shares obtained from the PIPE to repay the shares borrowed, since that would amount to having sold the PIPE shares too early. In addition, the S.E.C. says, it is illegal insider trading to sell the shares short if the seller knows a PIPE deal is coming, but that fact has not been announced to the public. Mr. Thorp, 42, of New York and the funds settled the case without admitting or denying the S.E.C. allegations.