Investment Adviser Charged For Demoting Whistleblower in SEC’s First Anti-Retaliation Case

Investment adviser and its owner settle SEC enforcement action for nearly US$2.2 million.

On June 16, 2014, the US Securities and Exchange Commission issued a cease and desist order and assessed a US$300,000 civil penalty, as part of a nearly US$2.2 million settlement, against a New York-based investment adviser and its owner in the first enforcement action based in part on provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that protect whistleblowers from retaliation by their employers. The SEC’s prosecutorial use of the anti-retaliation provisions is a reminder to US public companies and regulated entities that they must tread carefully when dealing with whistleblowers.

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