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Billionaire Hedge Fund Manager Fined $720,000 for Antitrust Violations
Fayez Sarofim, a billionaire hedge fund manager, has been fined $720,000 for violating antitrust premerger notification requirements. The Justice Department’s Antitrust Division has filed a civil antitrust lawsuit against Sarofim for failing to notify the government before acquiring voting securities of several companies.
The lawsuit alleges that Sarofim acquired voting securities of Kinder Morgan Inc. in 2001, 2006 and 2012, and Kemper Corporation in 2007, without notifying the government as required by the Hart-Scott-Rodino (HSR) Act of 1976. The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds to allow for premerger antitrust review.
Under the Hart-Scott-Rodino Act, federal courts can assess civil penalties for premerger notification violations in lawsuits brought by the government. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day, effective August 1.
The proposed settlement, subject to court approval, requires Sarofim to pay the $720,000 civil penalty to resolve the lawsuit. The settlement will be published in the Federal Register and is subject to a 60-day comment period. The U.S. District Court for the District of Columbia may approve the proposed settlement if it is in the public interest.
Fayez Sarofim’s failure to comply with antitrust regulations raises concerns about the integrity of the financial markets and the potential for unchecked corporate power. The fine, while significant, may not be sufficient to deter future violations.
The case highlights the importance of antitrust enforcement and the need for companies to comply with regulations designed to promote fair competition and prevent anti-competitive behavior.
The Federal Trade Commission has also issued a press release regarding the matter, which provides further details about the case and the proposed settlement.
The Justice Department’s Antitrust Division will continue to enforce antitrust laws and protect the public interest by holding companies accountable for their actions.
Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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