D. E. Shaw Faces SEC Charges for Whistleblower Rule Violation
The Securities and Exchange Commission (SEC) has charged investment adviser D. E. Shaw & Co. with violating whistleblower protection rules by requiring employees to sign agreements that prohibited the disclosure of confidential information to third parties, without exceptions for potential SEC whistleblowers. The company also required departing employees to sign releases affirming that they had not filed any complaints with government agencies in order to receive deferred compensation. D. E. Shaw has agreed to pay $10 million to settle the charges. The SEC's order finds that the company violated Rule 21F-17(a) of the Securities Exchange Act of 1934.