The Securities and Exchange Commission penalized EMS Capital LP for not correctly identifying whether the securities it sold had long or short positions.
The regulator said from April 2014 to November 2017, the company owned common shares in three companies that each consisted of long and short positions, which made its overall positions a net flat. The SEC said EMS Capital sold shares and incorrectly identified them as long positions.
EMS Capital also violated rules when it did not keep accurate memoranda that reflected that each order was a short sale and not a long sale order.
The SEC ordered the company to pay disgorgement of $229,374, prejudgment interest of $28,041.10, and a civil money penalty of $60,000.
