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Macquarie unit to pay US$15m to settle US SEC charges
[NEW YORK] A unit of Australia's Macquarie Group Ltd will pay US$15 million to settle US Securities and Exchange Commission charges that it underwrote a stock offering for China-based Puda Coal Inc despite having a report that showed the offering materials contained false information.
The settlement with Macquarie Capital (USA) Inc also calls for that New York-based brokerage to cover the costs of setting up a fair fund to compensate Puda investors who lost money.
Two former Macquarie Capital employees, managing director Aaron Black and investment banker William Fang, were separately charged with failing to exercise appropriate care. They agreed to pay a respective US$212,711 and US$35,000 to settle, and to bans within the securities industry.
None of the defendants admitted or denied wrongdoing.