{"id":5622,"date":"2014-06-16T00:00:00","date_gmt":"2014-06-16T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/06\/ny_hedge_fund_adviser_faces_se"},"modified":"2022-03-11T10:18:36","modified_gmt":"2022-03-11T16:18:36","slug":"ny-hedge-fund-adviser-faces-se","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ny-hedge-fund-adviser-faces-se\/","title":{"rendered":"NY Hedge Fund Adviser Faces SEC Charges Over Conflicted Transactions and Whistleblower Retaliation"},"content":{"rendered":"\n

Candace King Weir and her hedge fund advisory firm Paradigm Capital Management will pay $2.2M to resolve Securities and Exchange Commission charges accusing the firm of executing prohibited principal transactions and acting against the whistleblower employee who notified the regulator about the conflicted activity. Weir is charged with causing the principal transactions to happen. <\/p>\n

The agency contends that Weir facilitated the transactions between her firm and C.L. King & Associates, a brokerage firm that she also own, while trading for the hedge fund PCM Partners L.P. II. This type of transaction presents a conflict of interest between the client and adviser, and the latter is supposed to disclose that they are involved on both sides of the trade. The adviser also needs to get the client\u2019s permission for this. <\/p>\n

According to the Commission\u2019s order, Paradigm did not give written disclosure to the hedge fund or obtain its consent. Paradigm\u2019s head trader then reported the trading conduct. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Candace King Weir and her hedge fund advisory firm Paradigm Capital Management will pay $2.2M to resolve Securities and Exchange Commission charges accusing the firm of executing prohibited principal transactions and acting against the whistleblower employee who notified the regulator about the conflicted activity. Weir is charged with causing the principal transactions to happen. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748,3760,3795,3761,3938],"tags":[],"class_list":["post-5622","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","category-whistleblowers"],"yoast_head":"\nNY Hedge Fund Adviser Faces SEC Charges Over Conflicted Transactions and Whistleblower Retaliation — Investor Lawyers Blog — June 16, 2014<\/title>\n<meta name=\"description\" content=\"Candace King Weir and her hedge fund advisory firm Paradigm Capital Management will pay $2.2M to resolve Securities and Exchange Commission charges — June 16, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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