The Top SEC Settlements of 2011

By Joel Stonington - 2012-01-03T23:18:44Z

Photograph by Tim Mosenfelder/Wireimage/Getty Images

Company Symbol % Change
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No. 20: Lawrence R. Goldfarb, Baystar Capital Management

<p><strong>Total Settlement:</strong> $14.1 million</strong><br /><strong>Disgorgement:</strong> $14 million</strong><br /><strong>Penalty:</strong> $130,000</strong>

A "side pocket" is a secret account used to squirrel away funds for personal use. That's the device <a href="http://www.sec.gov/litigation/litreleases/2011/lr21870.htm">the SEC said</a> Larry Goldfarb, founding partner of LRG Capital Group, in Larkspur, Calif., used to conceal profit of at least $12 million. As part of the settlement, Goldfarb agreed to leave the business for five years, though he still opines about financial matters on his website. As part of a criminal deferred-prosecution agreement with the Justice Dept., Goldfarb admitted to committing wire fraud.</p>

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