SEC Fines, Bars Advisor That Made False Offer For Barnes & Noble

0
SEC Fines, Bars Advisor That Made False Offer For Barnes & Noble

Back in February of last year, almost everyone on Wall Street was scratching their head trying to figure out why anyone would pay $22 a share for old school bookstore Barnes & Noble when a press release claiming a formal offer had been made hit the wires that morning. It turned out the answer was nobody would, and the press release was a fraud perpetrated by G Asset Management and Michael Glickstein.

Details on SEC charges against Barnes & Noble scammer

On Thursday, the SEC announced it had charged Michael A. Glickstein and his investment advisory firm with fraud for publishing a misleading press release announcing an offer to buy a majority stake in bookseller Barnes & Noble. Glickstein and his firm, G Asset Management LLC, put out a press release on Feb. 21st of last year, claiming that G Asset had offered to purchase a majority interest in Barnes & Noble for $22 per share.

The price of Barnes & Noble’s shares almost instantly increased from $17.05 per share to $18.99 per share, causing a temporary trading halt on the NYSE.

Gator Financial Partners 1H2022 Performance Update

Screenshot 30Gator Financial Partners letter to investors for the first half of the year ended June 30, 2022. Q2 2022 hedge fund letters, conferences and more Dear Gator Financial Partners:  We are pleased to provide you with Gator Financial Partners, LLC’s (the “Fund” or “GFP”) 1st Half 2022 investor letter. This letter reviews the Fund’s 1st Read More

The SEC legal staff determined that G Asset’s press release was misleading because it did not disclose material facts such as G Asset had no ability to finance its offer to purchase Barnes & Noble and no reasonable basis to think it would be able to do so in the future. G Asset had also recently purchased thousands of Barnes & Noble shares and short-term call options hoping to sell then and profit on the fraud. The SEC determined that G Asset’s investment funds made close to  $168,000 in profits related to their sale of Barnes & Noble stock and options they purchased shortly before putting out the false press release.

G Asset and Glickstein, G Asset’s owner and CIO, settled charges they violated the anti-fraud provisions of the securities laws and SEC regulations. Without admitting or denying the findings in the order, Glickstein and his firm agreed to a settlement requiring the return of $175,000 of fraudulent profits. The firm also agreed to an official censure and Glickstein will pay a civil penalty of $100,000 and is barred from employment in the securities industry for at least five years.

Updated on

No posts to display