The Wall Street Journal reported yesterday morning that an SEC attorney “inadvertently revealed the identity” of a whistleblower to his former employer during an investigation of Pipeline Trading Systems LLC.
The whistleblower, Peter Earle, worked at Milstream Strategy Group LLC, a Pipeline-affiliated trading entity. Pipeline recently paid $1 million to settle SEC charges alleging that the company failed to disclose to customers of its “dark pool” trading platform that Milstream was filling most of the orders.
Earle provided the SEC with a notebook in early 2010 after he had left the company that helped guide the agency’s investigation. Later that year, Daniel Walfish—an attorney at the SEC’s New York Regional Office—provided Earle’s notebook to Gordon Henderson, who headed up Milstream. Henderson—who already had suspicions about Earle—was easily able to recognize Earle’s handwriting, according to the Journal.
It’s a total accident! It’s a complete coincidence, you see, that the lawyer who was formerly employed by Pipeline Trading Systems LLC was the one who leaked the name of their whistle-blower. It’s an even greater coincidence that it’s happened before [PDF]! The biggest coincidence at all is that one one ever gets punished for these leaks [PDF again].