SEC Accuses Brokers and Hedge Fund Advisers of Alleged Bribery Scheme

On March 12, 2009, the SEC filed suit in the United States District Court for the Southern District of New York accusing a broker-dealer firm, Granite Financial Group, LLC, and two brokers, Daniel Schreiber and David Harrison Baker, of allegedly bribing two employees of the hedge fund investment adviser JLF Asset Management LLC, Brian Travis and Nicholas Peter Vulpis, Jr., also named in the suit, in exchange for their routing of hedge fund trades to the brokerage firm.  The SEC charged defendants with various violations of the federal securities laws and sought injunctive relief, disgorgement plus prejudgment interests and civil penalties.  We provide details of the factual allegations and legal charges in the SEC’s complaint.

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