Caxton settles investigation.NEW YORK--(BUSINESS WIRE)--Dec. 16, 1994--Caxton Corp. today announced that it had reached settlement of the investigations by the U.S. Department of Justice and the Securities and Exchange Commission into trading U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. two-year notes in 1991. Caxton said it considers this settlement superior to continued, protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . In the joint settlement of both investigations, Caxton agreed to pay $14 million into a disgorgement Disgorgement A repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. fund and $22 million in penalties and forfeitures. The investors in Caxton's funds have not participated in the cost of defending the government investigation, as has been the case throughout the investigation, and will bear no part of the cost of the settlement. The settlement also includes injunctions prohibiting Caxton from violating securities and antitrust laws antitrust laws n. acts adopted by Congress to outlaw or restrict business practices considered to be monopolistic or which restrain interstate commerce. The Sherman Antitrust Act of 1890 declared illegal "every contract, combination.... . The settlement grows out of the investigations commenced in August 1991 by the Antitrust Division of the U.S. Department of Justice and the Securities and Exchange Commission into trading by Caxton and others in the U.S. Treasury two-year note issued in April 1991, due in April 1993. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. complaints filed today by the Antitrust Division and the Securities and Exchange Commission, Caxton participated in an arrangement to increase the price of the notes by restricting their supply. Caxton entered into the settlement without admitting or denying the allegations in either complaint. Caxton stated it is "pleased to have these investigations concluded and is well positioned to move forward in 1995." CONTACT: Stanley E. Rubenstein, 212/297-6108 |
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