The Securities and Exchange Commission reports that a former brokerage executive was ordered to pay US$150,000 over alleged violations concerning trading in “PIPE” securities.

The SEC says that on January 26, the Honorable Sandra Townes, U.S. District Court Judge for the Eastern District of New York, entered a final judgment against Guillaume Pollet, a former managing director of SG Cowen & Co., LLC. The final judgment orders Pollet to pay a civil penalty in the amount of US$150,000.

Previously, on Nov. 21, 2006, Judge Townes had entered a partial judgment permanently enjoining Pollet from violating securities laws. Pollet consented to the entry of the judgments without admitting or denying any of the allegations in the commission’s complaint.

In addition, Pollet consented to the issuance of a Dec. 12, 2006, commission order barring him from association with any broker or dealer.

Back 2005, the commission filed its action against Pollet alleging that, during 2001, Pollet traded in the securities of 10 public companies after receiving confidential non-public information that these entities were either engaged in, or were contemplating engaging in, “PIPE” financings. A “PIPE” is a private investment in public equity. Specifically, the complaint alleged that Pollet routinely sold short the publicly traded securities of the PIPE issuers prior to the close of the PIPE transaction in order to lock in gains for SG Cowen’s proprietary account.