Deer Park Hedge Fund Says It Expects to Pay $5 Million SEC Fine

Deer Park Road Management, the hedge fund firm founded by Michael Craig-Scheckman, told investors it expects to pay a $5 million fine for failing to maintain proper compliance procedures, resolving a U.S. regulator’s investigation into whether the firm mispriced bond holdings.

While the Securities and Exchange Commission had probed the hedge fund for undervaluing certain securities, the agency won’t allege that the firm’s performance or net asset value were ever misstated, Deer Park Road wrote in a Feb. 26 email to clients that was reviewed by Bloomberg News. In addition to the firm’s penalty, Chief Investment Officer Scott Burg has ...