Ex-SEC Investigator Settles Whistleblower Retaliation LawsuitJune 10, 2013
WASHINGTON (Reuters) – A former internal investigator at the Securities and Exchange Commission who claimed he was fired for trying to blow the whistle on possible misconduct has reached a $580,000 settlement with the SEC, his lawyer said on Monday.
David Weber, the SEC’s former assistant inspector general, filed a lawsuit against the agency last November following his Oct. 31 termination.
Weber had already been on administrative leave after some employees complained that he spoke openly about his desire to carry a gun at work.
His lawyer, Cary Hansel, told Reuters at the time the SEC justified the firing by citing an incident in which Weber brought a firearm in the car with him during a work-related trip.
But Weber believes he was fired for trying to blow the whistle about numerous problems at the SEC, including allegations that former Inspector General David Kotz had inappropriate personal relationships with people that may have tainted his investigations into the SEC’s handling of the Bernard Madoff and Allen Stanford Ponzi schemes.
“The SEC’s job is to protect Wall Street whistleblowers and investigate the misconduct they report,” Hansel said in a statement. “When Mr. Weber blew the whistle on wrongdoing in the SEC’s own ranks, the SEC engaged in a retaliatory cover up.”
Weber’s lawsuit had sought to recover millions of dollars in damages, and laid out details about numerous concerns, from allegations of Kotz’s potential conflicts of interest to claims that an office in the SEC’s Trading and Markets Division failed to encrypt its computers containing sensitive stock exchange data.