The Securities and Exchange Commission brought and settled charges involving 19 hedge fund advisors and private equity firms and one individual for participating in an offering of stock after short selling the same stock just prior to the offering. Under SEC rule, it is prohibited to participate in a stock offering after selling a stock short during a restricted period. The restricted period is the shorter of the period beginning five business days before the pricing of securities and ending with the pricing or beginning with the filing of a certain registration statement or notification with the SEC regarding the securities and ending with the pricing. The firms and individual agreed to pay sanctions in aggregate of more than US $9 million to resolve this matter.