• SEC reported settled charges against Centerline Investment Management Limited, a Hong Kong, China-based investment adviser, for violating an SEC short selling trade rule.
• Purchased stock in public offering of securities for advisory client after effecting short selling in same stock for advisory client during a period of time when rule prohibited.

Alleged Violations

• Violated Rule 105 (17 CFR 242.105) of Regulation M of SEA, prohibits short selling equity during restricted period, purchasing same security in offering absent exception.
• Found Centerline participated in covered offering of securities, occurring on Nov. 18, 2020, after it had sold short the same securities during the restricted period.

Enforcement

• Without admitting or denying the findings in the SEC's order, Centerline Investment agreed to cease and desist from committing or causing violations of Rule 105.
• To disgorge $1,476,907.15, prejudgment interest of $194,119.23, $111,614 penalty.