The SEC has announced that registered investment adviser M.A.G. Capital LLC, and its president and sole owner, David F. Firestone, have settled allegations that they took warrants from three hedge funds M.A.G. advises, without compensating those funds.  M.A.G. and Firestone agreed to an order, issued on March 2, 2009, by the SEC, in which they neither admitted nor denied the allegations, but agreed to a censure, to cease and desist from future violations and to pay civil monetary penalties of $100,000 and $50,000, respectively.  The SEC has reported that this settlement reflects the return of all warrants and the proceeds of all warrants sold.  We discuss the facts and allegations in the SEC’s order.