Hedge Fund Settles With SEC for $2.2 Million

WASHINGTON (CN) - An Albany, N.Y.-based hedge fund will pay $2.2 million to settle an SEC complaint of retaliating against an employee who reported its prohibited transactions, the SEC said Monday.

Paradigm Capital Management and its owner Candace King Weir agreed to pay $2.2 million to settle the charges, the SEC said in its settled complaint.

"Weir conducted transactions between Paradigm and a broker-dealer that she also owns while trading on behalf of a hedge fund client," the SEC said in a statement announcing the settlement and complaint.

After Paradigm and King Weir learned that their head trader had reported the misconduct to the SEC, they "engaged in a series of retaliatory actions that ultimately resulted in the head trader's resignation," the SEC said in the statement.

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