Tuesday, 31 May 2016
Last updated 3 days ago
Feb 3 2010 | 12:24pm ET
Bulldog Investors founder Phil Goldstein is mad. And when Phil Goldstein is mad, he does something about it.
At the moment, Goldstein is mad at Massachusetts Secretary of the Commonwealth William Galvin, who Goldstein once called a “pompous ass.” Galvin’s office sued Bulldog and Goldstein in 2007, accusing them of illegally providing information to a non-accredited investors. Thus far, the courts have sided with Galvin, upholding the cease-and-desist order and $25,000 fine levied on Goldstein, rejecting his claims that the marketing ban is a violation of the First Amendment’s protection of speech.
So Goldstein, who successfully challenged the Securities and Exchange Commission’s hedge fund registration requirement four years ago, is changing venues, suing Galvin in Boston federal court last week, HedgeFund.net reports. This time, Goldstein claims that Galvin has singled him out for administrative action because of his outspokenness, and that—like the marketing ban—is a violation of his free speech rights.
“Secretary Galvin has philosophical and political disagreements with me about the merits of hedge fund regulation,” Goldstein told HFN. “Rather than debate me about it in an open forum, he abused his position and charged me where I didn’t do anything wrong.”
Goldstein’s appeal of the original case is still pending in the Massachusetts state courts.