Goldstein Loses Free-Speech Appeal In Mass.’s Highest Court

Jul 6 2010 | 1:02pm ET

In his ongoing battle with the Commonwealth of Massachusetts, the third time was not the charm for Bulldog Investors founder Philip Goldstein.

The state’s Supreme Judicial Court on Friday rejected Bulldog’s appeal of a $25,000 fine levied against it by Massachusetts Secretary of the Commonwealth William Galvin more than three years ago. The appeals court, the state’s highest, ruled that New Jersey-based Bulldog violated Massachusetts securities laws by providing information about itself to a non-accredited investor. Bulldog’s funds are not registered in Massachusetts.

The ruling upholds two lower-level decisions, first from a Massachusetts Securities Division hearing officer and then a Boston Superior Court judge, which found against Bulldog. All three stem from Galvin’s January 2007 cease-and-desist order against Bulldog.

Bulldog had maintained that Galvin had no jurisdiction over it and that its rules violated the hedge fund’s First Amendment right to free speech.

It is unclear whether Bulldog plans to further appeal the case, but it would certainly be no surprise if the hedge fund did so. Goldstein in February sued Galvin, who he once called a “pompous ass,” accusing him of singling out Bulldog because of Goldstein’s outspokenness.

After losing the first court decision in October, Goldstein told Reuters, “apparently, if you live in Massachusetts, you have to be rich to read truthful material on a hedge fund Web site.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.