June 16, 2014 / 3:40 PM / 3 years ago

U.S. SEC charges hedge fund adviser over whistleblower retaliation

1 Min Read

WASHINGTON, June 16 (Reuters) - 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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below