SEC Employee Wrongfully Calmed Fellow Investors: OIG

Law360, New York (June 1, 2011, 4:36 PM EDT) -- A U.S. Securities and Exchange Commission employee who had invested in an alleged Ponzi scheme broke agency rules when he tried to reassure fellow investors that it was legitimate, despite an SEC investigation, the agency's Office of the Inspector General said Tuesday.

The employee was an investor in a company the SEC sued in October, accusing it of orchestrating a Ponzi scheme and asking a court to freeze its assets, according to the OIG's report. But the employee allegedly told fellow investors that the company was...
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