Regulator considering action against firm

Regulator considering action against firm

Regulator considering action against firm Rumors are swirling that one company may soon be under the spotlight of a regulator.

According to a Bloomberg report, an anonymous source close to the matter informed the publication that they had received a letter from hedge fund manager Leon Cooperman outlining to clients of Omega Advisors that a regulator would be looking at the company’s trading in securities dating back to 2010.

Speaking to CNBC, Cooperman stated that the probe centered on trading of Atlas Pipeline Partners. According to the report, the US Securities and Exchange Commission (SEC) has sent a Wells notice to the company – these notices are sent when the regulator determines there has been sufficient wrongdoing at a company, so much so that civil claims could be filed.

Cooperman added, however, according to Bloomberg’s anonymous source, that he disagreed with the regulators that any securities laws had been violated.

According to SEC filings, Cooperman initially established a stake in Atlas Pipeline back in 2007 – with the position greatly increasing in both 2010 and 2013.

Omega is based in New York with an average annual return of 11 per cent since it was founded back in 1991. However, in 2014 it declined by 2.8 per cent and its performance has struggled further ever since – with losses of 10.4 per cent in 2015 and 10 per cent during the first two months of 2016.