In June 2014, the Securities and Exchange Commission charged an Albany, N.Y.-based hedge fund advisory firm, Paradigm Capital Management, with engaging in prohibited principal transactions and then retaliating against the employee who reported the trading activity to the Commission. It was the first time the SEC filed a case under its new authority to bring anti-retaliation enforcement actions.
On Tuesday, the SEC announced that the whistleblower will receive a maximum whistleblower award payment of 30 percent of the amounts collected from that enforcement action. He will receive more than $600,000 for providing “key, original information” and “suffering unique hardships” after management at the firm learned the misconduct was reported.
