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clipped from online.wsj.com

Hedge Funds Subpoenaed in SEC Probe

By Kara Scannell and Jenny Strasburg
Word Count: 509 |  Companies Featured in This Article: Lehman Brothers Holdings

The Securities and Exchange Commission has sent subpoenas to more than 50 hedge-fund advisers as part of its investigation into whether individuals spread false rumors to manipulate shares of two Wall Street firms, a person familiar with the matter said.

The subpoenas, sent as recently as Monday, are seeking trading and communications data related to short-selling and options trading in Bear Stearns Cos. or Lehman Brothers Holdings Inc., this person said. Some of the hedge-fund advisers have received subpoenas related to both probes, while others were contacted with respect to only one, this person said. A hedge-fund adviser can operate ...

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