The SEC Division of Corporation Finance waived any disqualification under Rule 506 of Regulation D for certain hedge funds and issuers affiliated with or owned by Leon G. Cooperman and his advisory firm, Omega Advisors, Inc. ("Omega").
The waiver concerns a final judgment, entered in the United States District Court for the Eastern District of Pennsylvania, that required Mr. Cooperman and Omega to pay nearly $5 million in interest, disgorgement and penalties, and subjected them to independent compliance monitoring (see previous coverage). Mr. Cooperman and Omega agreed to the entry of judgment, and to settle charges of insider trading and beneficial ownership reporting violations.
The SEC determined that Mr. Cooperman and Omega made "a showing of good cause under Rule 506(d)(2)(ii) of Regulation D," which rendered any disqualification unnecessary.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
