Also contributing to the problems were market forces that drove down the value of NSB’s long positions and cash withdrawals from the two large accounts about which CLK expressed concern.
The SEC did not allege any impropriety in King’s use of the CLK proprietary trading account, but only in the related disclosures and vetting process, nor did King’s use of the account have any impact on CLK’s capital.
As a result, CLK put pressure on NSB’s customers to sell securities, beginning in January 2012 and terminated the Service Agreement on March 14.
CLK also tried to find buyers of securities to be sold in forced liquidations from NSB customer accounts.
Bellman Walter Capital, the long/short equity shop co-founded in 2008 by former SAC Capital Advisors short-term trading star Rich Walter and another SAC veteran, energy trader Jeff Bellman, has closed shop.
Once an investment enters a side pocket account, only the current participants in the hedge fund are entitled to a share of it.SAC INVESTORS, LLC is an entity registered at Georgia with company number 0673974. This is the second Award to issue in a dispute between investment advisor Bill Nicklin of NBS Advisors, LLC (“NSB”) and NSB’s clearing broker, C. King (“CLK”), and, as in the earlier-concluded case, the pleadings shed much light on what would otherwise be an opaque set of claims and defenses.(ed: *CLK’s allegations about Weir’s purchase of NSB’s long positions does not address any of the claims in this case, but did address an allegation by Nicklin in the prior case. Twice a week we present blog posts consisting of one write-up from each of our two flagship weekly online Alert services.There, in his Statement of Answer, he claimed that Weir forced the margin liquidation in order to purchase the stock because she realized it would be profitable. King was represented in the arbitration by Richard Roth of The Roth Law Firm, New York City, and Chris Robertson, Seyfarth Shaw (Boston). Roth commented on the Panel's decision: “By the Award, the Panel confirmed, as have other panels, that C. King acted at all times merely as a custodial firm....) (SAC Ref. Consider a subscription to these publications to receive the full array of coverage right on your desktop every week.