The Securities and Exchange Commission has been investigating the Dallas-based hedge fund Gryphon Partners for allegations of manipulative trading in the $14 billion-a-year market for private investment in public equity (PIPEs), and for misusing nonpublic information, according

The SEC alleges that the hedge fund found out about government investigations into publicly traded companies, shorted stock in those companies and then leaked the news on the Internet to help drive down their prices. The case is part of an ongoing investigation by the SEC into PIPEs that began 18 months ago with subpoenas to 10 hedge funds and 20 brokerage firms that deal in PIPEs.

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