The Securities and Exchange Commission on Tuesday sanctioned a trader and two companies he controls over insider trading in the stock of a China-based company and conducting illegal short sales in the securities of three other companies. The trader, Charles Raymond Langston III, agreed to disgorge $193,108 and pay $22,204 in prejudgment interest and a $193,108 fine for insider trading in violation of the antifraud provisions of the federal securities laws, without admitting or denying the allegations in an SEC complaint. Langston and his companies, CRL Management, LLC and Guarantee Reinsurance, Ltd., also agreed to be enjoined from violating Rule 105 of Regulation M, but the court will determine monetary sanctions for these violations at a later date. Rule 105 – which can be violated without evidence of intent – was designed to address illegal short selling that can reduce offering proceeds received by companies by artificially depressing the market price shortly before the company
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