VA Linux Systems IPO Scrutiny: SEC Probes Investor Fees and Funds

The Securities and Exchange Commission, intensifying its investigation into questionable IPO practices, is examining the activities of two little-known investment funds that obtained relatively large chunks of VA Linux Systems' initial public stock offering. . . . The Securities and Exchange Commission, intensifying its investigation into questionable IPO practices, is examining the activities of two little-known investment funds that obtained relatively large chunks of VA Linux Systems' initial public stock offering.

The scrutiny of the funds, GLG Partners and Chelsey Capital, is part of a broader examination into whether some investors paid Wall Street firms unusually large trading commissions in exchange for slices of coveted IPOs, according to people familiar with the probe.

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