{"id":48011,"date":"2015-05-04T08:19:07","date_gmt":"2015-05-04T12:19:07","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=48011"},"modified":"2015-05-04T08:41:48","modified_gmt":"2015-05-04T12:41:48","slug":"hedge-fund-whistleblower-awarded-600000","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2015\/hedge-fund-whistleblower-awarded-600000.html","title":{"rendered":"Hedge Fund Whistleblower Awarded $600,000"},"content":{"rendered":"

\"whistleblower-lawyer\"<\/a>New York (HedgeCo.Net) – An employee who worked at a hedge fund adviser has received the\u00a0maximum whistleblower award after\u00a0reporting insider trading\u00a0activity.<\/p>\n

NY hedge fund\u00a0advisory firm Paradigm Capital Management and its owner Candace King Weir also agreed to pay $2.2 million to settle SEC charges without admitting or denying wrong doing back in\u00a0June 2014.<\/p>\n

The SEC announced a payment of 30 percent of amounts collected in connection with\u00a0the SEC\u2019s first retaliation case.\u00a0 The whistleblower will receive over $600,000 for providing key original information that led to the successful SEC enforcement action.\u00a0 The whistleblower in this matter suffered unique hardships, including retaliation, as a result of reporting to the Commission.<\/p>\n

To date, the SEC has awarded 17 whistleblowers since its program began more than three years ago.\u00a0 Payouts now total over $50 million.<\/p>\n

The SEC says that after Paradigm learned that the firm\u2019s head trader\u00a0had reported potential misconduct to the SEC, the firm engaged in a series of retaliatory actions that ultimately resulted in the head trader\u00b4s\u00a0resignation.\u00a0A Commission rule adopted in 2011 under the Dodd-Frank Act authorized the SEC to bring enforcement actions based on retaliation against whistleblowers who report potential securities law violations to the agency.<\/p>\n

This is the first time the SEC has filed a case under its new authority to bring anti-retaliation enforcement actions. The SEC also charged the firm\u2019s owner with causing the improper principal transactions.<\/p>\n

“Paradigm\u2019s head trader reported trading\u00a0activity revealing that Paradigm engaged in prohibited principal transactions with affiliated broker-dealer\u00a0C.L. King & Associates while trading\u00a0on behalf of hedge fund client PCM Partners L.P. II.”\u00a0said Andrew J. Ceresney, director of the SEC Enforcement Division. “The SEC\u2019s subsequent investigation found that Paradigm engaged in the trading strategy from at least 2009 to 2011 to reduce the tax liability of the firm\u2019s hedge fund investors. As part of that strategy, Weir directed Paradigm\u2019s traders to sell securities that had unrealized losses from the hedge fund to a proprietary trading account\u00a0at C.L. King. The realized losses were used to offset the hedge fund\u2019s realized gains. Paradigm engaged in at least 83 principal transactions by selling 47 securities positions from the hedge fund to C.L. King and then repurchasing 36 of those positions for the hedge fund.”<\/p>\n

Alex Akesson<\/span>
Editor for\u00a0<\/span>HedgeCo.net<\/a>
alex@hedgeco.net<\/a>
HedgeCo.Net<\/a>\u00a0is a premier\u00a0<\/span>hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<\/span>HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<\/span>Hedge Funds<\/a>!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – An employee who worked at a hedge fund adviser has received the\u00a0maximum whistleblower award after\u00a0reporting insider trading\u00a0activity. NY hedge fund\u00a0advisory firm Paradigm Capital Management and its owner Candace King Weir also agreed to pay $2.2 million […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,3],"tags":[],"class_list":["post-48011","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-regulation","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=48011"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48011\/revisions"}],"predecessor-version":[{"id":48031,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48011\/revisions\/48031"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=48011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=48011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=48011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}