Deephaven Capital Management, the asset management unit of Knight Capital, has agreed to pay $5.8m (€4.8m) in disgorgement, civil penalties and interest to the Securities and Exchange Commission to resolve an investigation of insider trading of private stock placements.

The SEC had filed a civil injunctive action against Deephaven and former portfolio manager Bruce Lieberman, charging them with insider trading while in possession of nonpublic information concerning 19 so-called 'Pipe' offerings, or private investment in public equity partnerships.