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SEC Charges Hedge Fund With Whistleblower Retaliation

CW Logo SmallDear Friends,

For the first time the SEC filed a case under its new authority to bring anti-retaliation enforcement actions. The SEC charged a hedge fund with engaging in prohibited principal transactions and retaliating against the whistleblower. The firm agreed to pay $2.2 million and to hire an independent compliance consultant.

The CIO conducted transactions between the hedge fund and a broker-dealer owned by the CIO, while trading on behalf of a hedge fund client, without effective written disclosure or consent.  The head trader was demoted to compliance assistant, after reporting the prohibited transactions to the SEC.

Please click here for the SEC’s order. Please feel free to contact us with any questions at (212) 867-0200 or email us at info@counselworksllc.com.

Thank you,


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CounselWorks is a strategic business and regulatory consulting firm, that provides project-based consulting and manages compliance and regulatory programs for hedge funds, private equity firms, investment companies, broker-dealers and investment banks.
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