Securities Cases


SEC Awards Maximum Whistleblower Award in First SEC Anti-Retaliation Case

SEC Awards Maximum Whistleblower Award in First SEC Anti-Retaliation Case

The Securities and Exchange Commission (SEC) has awarded an unnamed whistleblower the maximum monetary award (30 percent of the settlement amount) in its first anti-retaliation case. An employee of New York-based hedge fund advisory firm, Paradigm Capital Management, alleged the employer was engaging in illicit transactions and subjected the employee to demotion and harassment as a result of the allegations. An SEC spokesperson reports this award will demonstrate SEC support of whistleblowers and anti-retaliation laws.

Paradigm Capital Management Allegedly Demoted and Harassed SEC Whistleblowing Employee

In 2012, an employee presented information to the SEC alleging Paradigm Capital Management was involved in illicit transactions with a broker-dealer while trading for a hedge-fund client with the intention of reducing investors’ tax liability....