Proceeding File No. 3-10010 (SEC Sept. 13, 1999).[5]See Riggs Inv. Mgmt. Corp. v. Columbia Partners, LLC, 966 F. Supp. 1250, 1269 (D.D.C. 1997) (holding that claiming compliance with AIMR-PPS yet linking non-portable, prior firm performance to a firm’s composite track record in contravention of such standards constituted materially misleading conduct).[6] ZPRIM also misrepresented to Morningstar that ZPRIM was not under any SEC investigation, a misrepresentation that facilitated what the ALJ deemed to be a misleading Morningstar report.

The Faithless Servant doctrine has been accepted or rejected to varying extents in other jurisdictions. Mark Jacoby has a detailed explanation and citations for most of these various state rules in his article “Disloyalty Doesn’t Pay: New York’s ‘Faithless Servant’ Doctrine” Mar. 2004.States adopting the Faithless Servant doctrine include: California (J.C. Peacock, Inc. v. Hasko, 16 Cal. Rptr. 518, 522-24 (Cal. Ct. App. 1961)); the District of Columbia (Riggs Inv. Mgmt. Corp. v. Columbia Partners, L.L.C., 966 F. Supp. 1250, 1266 (D.D.C. 1997) (holding that “no compensation is owed an employee who has breached his duty of loyalty to his employer,” and that the employee must return to his employer compensation he earned following the disloyal act)); Maryland (Shipley v. Meadowbrook Club, Inc., 126 A.2d. 288, 291 (Md. 1956) (disloyal agents may be denied compensation, “particularly where there is a conflicting interest, concealment, or a willful and deliberate breach of his contract”)); Georgia (Vinson v. E.W. Buschman Co., 323 S.E.2d 204, 207 (Ga. App. 1984)); Illinois (ABC Trans Nat. Transport v. Aeronautics Forwarders, Inc., 413 N.E.2d 1299, 1314-15 (Ill. App. 1980)); Missouri (Zakibe v. Ahrens & McCarron, Inc., 28 S.W.3d 373, 385-86 (Mo. App. 2000) (collecting additional cases)); Oregon (Horton v. Whitehill, 854 P.2d 977, 980 (Or. App. 1993)).States that have adopted some aspect of the doctrine include: Massachusetts (Meehan v. Shaughnessy, 535 N.E.2d 1255, 1266-67 (Mass.