Erika Kelton, Forbes
For the past two years, Securities and Exchange Commission officials have frequently stated that the SEC won’t tolerate retaliation against whistleblowers who report suspected wrongdoing to the commission.
Last week, the SEC showed that it really means what it says. The SEC announced that it had for the first time charged a firm with violating the anti-retaliation provisions of the Dodd-Frank Act.
The firm, Paradigm Capital Management, and its owner, Candace King Weir, agreed to pay the SEC $2.2 million to settle an unnamed whistleblower’s allegations of wrongdoing, including charges the company engaged in employment retaliation. The SEC alleged Weir failed to provide effective written disclosure to a hedge fund client of her ownership of the broker-dealer that was executing securities transactions for the hedge fund.