S.E.C. Fines Hedge Fund In Demotion Of Employee

The New York Times: The Securities and Exchange Commission has sounded a warning to Wall Street and corporate America, taking aim at a hedge fund not only for improper trading but for punishing the employee who blew the whistle on the wrongdoing.

On Monday, Paradigm Capital Management became the first investment fund to pay a fine for retaliating against an employee who reported his firm’s misdeeds to the S.E.C. The hedge fund, which is based in Albany and manages $1.5 billion of client money, agreed to pay $2.2 million to settle the civil charges.

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