Goldstein Sues Galvin For Alleged Retaliation

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.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note