Citadel Securities has reached a settlement with the U.S. Securities and Exchange Commission. Citadel belongs to billionaire hedge-fund manager Ken Griffin. The price tag for the agreement is $22.6 million.
The SEC said Citadel and Griffin misled customers.
That’s a nice way of saying he cheated them.
While admitting neither guilt or innocence, why would an innocent man pay $22.6 million?
The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere. The SEC penalized Citadel for failing to disclose the use of those algorithms to clients.
“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC.
Griffin is Illinois’ richest man and one of the wealthiest guys in the world.
He is a pal and contributor to both Democrat Rahm Emanuel and Republican Bruce Rauner.
While Illinois may be broke, its richest man sure isn’t. Even after paying a measly $22 million fine to the SEC.
Teachers may get furloughed, but Ken is doing great.
As someone who makes his money from hedge funds he pays a smaller state income tax rate than you do.
Unfazed by his SEC troubles, Griffin has recently been active in the Florida real estate market.
Chicago billionaire philanthropist Ken Griffin has paid $85 million for an oceanfront estate in Palm Beach, Fla., that neighbors property he already owns there.
It’s the second-highest-dollar single real estate transaction ever, according to the Palm Beach Daily News. First was a 2008 deal by President-elect Donald Trump, who sold a renovated mansion in the area for a $95 million.
Griffin, the founder of the Chicago-based hedge fund company Citadel and the market-maker Citadel Securities, plans to build a massive estate. The vacation home will straddle the two properties he now owns and will be designed by San Francisco-based architect Ugo Sap.
The Daily News says Griffin now owns more than 12 acres of contiguous land with about 871 feet of oceanfront. The tab for all that property: $229.85 million.