The Securities and Exchange Commission has charged OZ Management LP with providing inaccurate trade datato four prime brokers, causing inaccuracies in the brokers’ books and records and in data provided to the SEC in investigations.
OZ Management, an investment adviser for numerous Och-Ziff funds, admitted wrongdoing and agreed to pay a $4.25m penalty to settle the charges.
According to the SEC’s order instituting a settled cease-and-desist proceeding, for nearly six years, ending in December 2013, OZ Management misidentified some trades in data provided to four of its prime brokers. Although trade settlement was unaffected, the erroneous data had a significant impact, causing the four prime brokers to inaccurately list approximately 552m shares in their own books and records. The erroneous information also was incorporated into data that brokers provide electronically to regulators, resulting in approximately 14.4m shares being inaccurately reported in response to the SEC’s “blue sheet” requests. FINRA made several referrals to the Commission based on the incorrect trade data.
Source: HITC Business
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