A hedge fund, Paradigm Capital Management, and its owner will pay $2.2 million to settle federal charges that the firm set up trades with a conflict of interest, and subsequently fired a high-ranking employee who reported the investment fraud. The Securities and Exchange Commission announced the settlement. This is the first case in which the agency protected a whistleblower under the new anti-retaliation law adopted in 2010.
The whistleblower reported to the SEC that the owner ...
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