Sex Bias Ruling Prompts SEC Internal Investigation

The Securities and Exchange Commission said Tuesday that it would conduct an internal investigation in the wake of a federal judge’s finding of sexual harassment at the agency’s regional office here.

Chairman David S. Ruder ordered the agency to hire two outside counsels: one to investigate possible disciplinary action against SEC officials involved in the case and another to review the agency’s equal employment procedures, said spokeswoman Mary McCue.

The agency, meanwhile, is trying to reach a settlement with staff attorney Catherine Broderick, who won favorable judgment last month from U.S. District Judge John H. Pratt on her sexual harassment suit.

Pratt found that Broderick was forced to work in a “sexually hostile” atmosphere where male supervisors had romantic relationships with secretaries, who received promotions and bonuses.

The judge also ruled that Broderick was passed over for promotions and given a negative evaluation after she complained.

Emphasizing that the agency still has not decided whether to appeal Pratt’s decision, McCue said SEC lawyers are negotiating with Broderick’s attorneys over how to resolve the case.

Pratt ordered both sides to submit proposals for compensating Broderick, remedies which could include promotions and back pay.

A hearing, which was scheduled for today, was postponed until June 16 to give both sides more time to discuss a way to resolve the case.