Two broker-dealers settled separate SEC charges (see here and here) for tendering a number of shares greater than their net long positions in a partial tender offer for shares of common stock.

According to the SEC, the broker-dealers violated Exchange Act Rule 14e-14 (a/k/a the "short tender rule") by separately tendering 75,000 shares and 50,000 shares in excess of each broker-dealer's net long position. The SEC Order found that, because the partial tender offer was oversubscribed, the broker-dealers caused the company to accept more shares from them and fewer from other participants.

To settle the charges, the broker-dealers agreed to (i) cease and desist from further violating SEC rules, (ii) censures, (iii) disgorgements in the amounts of $223,836 plus interest and $149,224 plus interest, respectively and (iv) civil monetary penalties both in the amount of $50,000.