WASHINGTON, June 16 A hedge fund advisory firm
agreed to pay $2.2 million on Monday to settle civil charges
that it retaliated against an employee whistleblower who raised
concerns about certain conflicted trades, U.S. regulators said.
The Securities and Exchange Commission's case against
Albany-based Paradigm Capital Management and owner Candace King
Weir marks the first time the agency has ever filed charges
using new powers it won from Congress in 2010 to protect
whistleblowers from retaliation.
In addition to charging the advisory firm for improper
retaliation, the SEC also said that Weir violated federal
securities laws by conducting conflict-ridden trades between
Paradigm and a brokerage that Weir owned on behalf of a hedge
fund client without disclosing it.
(Reporting by Sarah N. Lynch; Editing by Eric Beech)