SEC Employee Fell for Scam, Misled Investors, Watchdog Says
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A Securities and Exchange Commission worker who was a victim in an alleged Ponzi scheme gave fellow investors false and misleading information that could have hindered investigation of the fraud, the agency’s watchdog said.
The employee, based at SEC headquarters in Washington, shared nonpublic information with several investors during the agency’s investigation and litigation of the case, Inspector General H. David Kotz said in his semiannual report to Congress released today. The report didn’t identify either the SEC employee or the firm accused of conducting the fraud.