SEC v. HITE Hedge Asset Management LLC et al. (rule 105 offering shorts, 2023)

Settled

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In February 2023 the Securities and Exchange Commission filed a settled federal complaint against HITE Hedge Asset Management LLC, alleging a Rule 105 breach, with its funds named as relief defendants. The release records a civil penalty of $103,591, disgorgement of $111,628 and prejudgment interest of $4,936.

The record

What was ordered

Civil penalty

$104k

Disgorgement

$112k

Prejudgment interest

$4.9k

Total relief

$220k

Alleged gain

$112k

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on February 17, 2023 as release LR-25643. The respondents named are HITE Hedge Asset Management LLC, HITE Hedge LP, HITE Hedge II LP and HITE Hedge Offshore Ltd. (0 individuals, 4 entities). The action was brought in the U.S. District Court, District of Massachusetts.

This is the SEC litigation release for a settled federal complaint, filed February 17, 2023 and subject to court approval. It alleges the adviser bought in a public offering for its funds after selling the same stock short in the restricted period; the funds are named as relief defendants. The adviser also agreed to a related administrative order. Figures are those stated in the release for the court judgments.

This library tags the matter as rule 105 offering shorts, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The relief recorded in our data is a civil penalty of $103,591, disgorgement of $111,628 and prejudgment interest of $4,936. Penalty and disgorgement are distinct: disgorgement returns the gain, while the penalty is punitive. We store them separately so that aggregate figures across the library are not double-counted.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Rule 105 offering shorts — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2023-02-17 Settled complaint filed (D. Mass., No. 1:23-cv-10351)
2. 2023-02-21 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 20, 2026. submit a correction.