In recent years, the Securities and Exchange Commission has had its share a fuck-ups come to light. The regulator took a pass on heeding the warning signals by Bernie Madoff himself that he was running a Ponzi scheme, it chose to go after David Einhorn rather than Allied Capital when the hedge fund manager suggested all was not right at the company, and yesterday, it was announced that the Commission is suing Egan-Jones for lying about having rated 150 ABS bonds on an SEC application four years ago (in reality it had rated zero), information that could have been fact-checked at the time but was not because there were new clips on www.ladyboyjuice.com, www.anal-sins.com, and www.fuck-my-wife.com to watch. Today the team scored a new victory when it outed an informant (in typical amateur hour fashion, natch).

Federal securities regulators, in a sensitive breach, inadvertently revealed the identity of a whistleblower during a probe of a firm that ran a stock trading platform. The gaffe by the Securities and Exchange Commission occurred during an investigation of Pipeline Trading Systems LLC when an SEC lawyer showed an executive who was being questioned a notebook from the whistleblower filled with jottings about trades, calls and meetings. The executive says he recognized the handwriting. Pipeline, which didn’t admit or deny the allegations, was the subject of a page-one Wall Street Journal article earlier this month. The article didn’t name the whistleblower, but he has now agreed to be publicly identified. He is Peter C. Earle, 41, a former employee of a Pipeline trading affiliate. Mr. Earle said he was “disappointed” the SEC took steps in its probe that ended up disclosing his identity to Pipeline. The SEC confirmed showing the notebook to an executive of the business it was investigating. SEC officials said there is always a risk a whistleblower’s identity might be disclosed during an investigation, but its practice has been to avoid unnecessarily revealing an informant’s identity.

The person shown the notebook (in a November 2010 SEC interview), Gordon Henderson, was the head of Pipeline’s trading affiliate, Milstream Strategy Group. He said in an interview that he previously suspected Mr. Earle was an SEC informant. Mr. Henderson’s desk was near Mr. Earle’s in Milstream’s New York office, and he said he recognized Mr. Earle’s handwriting in the notebook.

Oops! Now Peter’s days are spent gazing listlessly into distance but what can you do? These things happen.

Source’s Cover Blown By SEC [SEC]

*Related re: not helping future career prospects: “Mr. Earle said he made other internal complaints about trading, and was fired on April 3, 2009. Mr. Henderson said the reasons for dismissal included poor performance and a belief Mr. Earle was having an affair with the wife of another Milstream trader at the time. Mr. Earle denied both allegations, calling the notion of poor performance ‘ridiculous.’”

Comments (29)

  1. Posted by guest | April 25, 2012 at 12:54 PM

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  2. Posted by M Levine | April 25, 2012 at 12:59 PM

    Seems like somebody needs a crash course in the * usage.

  3. Posted by Guest | April 25, 2012 at 1:04 PM

    I, for one, feel much safer knowing the SEC has my back.

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  5. Posted by Ironyman | April 25, 2012 at 1:22 PM

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  7. Posted by Yes, I Wrote It | April 25, 2012 at 1:32 PM

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  8. Posted by Fabled Lothario | April 25, 2012 at 1:34 PM

    Funny how he denied the "poor performance" part of the dual accusation.

  9. Posted by PermaGuestII | April 25, 2012 at 1:37 PM

    And perhaps that service could get reservations at overcrowded downtown bars, too.

  10. Posted by Guest | April 25, 2012 at 1:41 PM

    Sometimes I am so lonely that I wish the SEC would probe me.

  11. Posted by Guest | April 25, 2012 at 1:58 PM

    If he was an Aesir client, he wouldn't be standing by a pond alone.

  12. Posted by Bandersnatch | April 25, 2012 at 2:46 PM

    We tried! What were the chances that an executive could figure out who the whistleblower was by looking at his notebooks? We went to the trouble of only referring to the whistelblower as Eterpay Erleway, for Christsakes.
    - SEC Witless Protection Director

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    http://www.star-telegram.com/2012/04/24/3909676/c

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    How does one distinguish a "vintage" bowtie from a regular bowtie?

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