Deals
Hedge Fund Priest's Trades Probed by Wall Street Cop
- SEC examining whether he spread false statements about stocks
- Priest says there is no regulatory probe of his firm
Hedge Fund Priest's Trades Said to Be Investigated
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A priest who sidelines as a hedge-fund manager is being investigated by U.S. regulators for possible stock manipulation, prompting scrutiny of trading skills that the cleric has described as a “gift from God,” according to people with knowledge of the matter.
The Securities and Exchange Commission is examining whether the Reverend Emmanuel Lemelson of Massachusetts made false statements about companies he was shorting, said the people who asked not to be named because the probe isn’t public. Securities laws prohibit traders from betting a company’s shares will fall and then trying to drive down the price by publishing information that they know isn’t true.