- October 20, 2014
Last week, the SEC released key data relating to Enforcement Division activity in FY 2014. Among the highlights, we note a 10% increase in enforcement actions over the prior year. Most importantly, monetary sanctions are significantly larger; a 22% increase in penalties an disgorgement as compared to FY 2013. Whistleblowers continue to play a crucial role in the enforcement paradigm — with 9 whistleblowers receiving total awards of approximately $35 million in FY 2014. Notably, using its new authority to bring anti-retaliation enforcement actions, the SEC charged 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, and charged the firm’s owner in connection with the principal transactions. This employee is a [Jordan Thomas][prior firm][‘s] client. For the complete results, see the SEC release.
