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Internal whistleblower sues SEC and its boss for $40 million

An assistant inspector general at the SEC claims he was fired and defamed after he told Congress about serious lapses inside the agency.

David P. Weber alleges he was fired in retaliation for speaking out about waste in the SEC’s move to new offices and its improper handling of sensitive securities registration and trading data.

He also alleged affairs inside the agency, sexual assaults against security staff, and nepotism in hiring practices.

His federal whistleblower complaint names as defendants the SEC and its chairman, Mary Schapiro.

Weber wants at least $40 million in damages.

He said he was fired in October after being cleared of misconduct by another government inspector’s office.

According to his complaint, he was smeared through the media after his termination and is now unemployable.

A report about Weber’s suit by Larry Doyle on the Business Insider said:

Weber’s titillating testimony turns its focus on other executives within the Commission, including the COO and chair Mary Schapiro. Weber’s charges of nepotism and a lack of meaningful internal controls expose the risks that the Commission presented in its daily management of operations and beyond that as well. One does not need to read very hard to understand Weber’s belief that the SEC’s COO utilized a “pay to play” practice. Additionally, in a scene fit for the classic movie Dumb and Dumber, Weber asserts that SEC representatives brought highly sensitive computer code and encryption data to monitor activity on our equity exchanges to a hacker’s conference in Las Vegas. You cannot make this stuff up, folks.

The complaint in David Weber v SEC and Mary Schapiro filed November 15 can be downloaded from Larry Doyle’s site here.

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