The former head trader at Paradigm Capital Management who was demoted and marginalized after reporting conflicts of interest to the SEC was awarded more than $600,000 Tuesday in the agency’s first enforcement action based on retaliation against a whistleblower.
The SEC last year charged Paradigm and its owner Candace King Weir with retaliation. The firm and Weir together paid $2.2 million to settle the charges.
The whistleblower had reported to the SEC that Weir owned a broker-dealer that did business with Paradigm when trading on behalf of a hedge fund client. The transactions involved “conflicts between the interests of the adviser and the client” that needed to be disclosed to the client.
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