The Securities and Exchange Commission can’t prevent lawyers at Pepper Hamilton from getting paid to pursue further appeals in defense of client Pentagon Capital Management, a federal judge in Manhattan concluded Monday.
U.S. Southern District Court Judge Robert Sweet (See Profile) ruled last year that Pentagon and one of its executives committed securities fraud by engaging in late trading of mutual funds. The U.S. Court of Appeals for the Second Circuit largely affirmed that ruling in August, leaving the defendants on the hook to pay more than $60 million.
