Hedge Fund Manager Kenneth Pasternak Cleared of Securities Fraud

On June 12, 2008, the US District Court for the District of New Jersey ruled that the SEC failed to prove a securities fraud case brought in 2005 against Kenneth Pasternak, co-founder of Knight Trading Group and current manager of hedge fund Chestnut Ridge Capital. The case, dealing with allegations of breach of Knight’s best execution obligation, provides useful guidance into execution prices that can be charged without violating the best execution obligation, and the various factors that come into play when courts are faced with an allegation of breach of the obligation.

To read the full article

Continue reading your article with a HFLR subscription.