Some new details have emerged about this controversial SEC insider trading investigation, courtesy of former Pequot employee, David Zikha's divorce proceedings. The filings show that Zikha, who joined Pequot from Microsoft back in 2001 received a nearly $2 million payment from Pequot and was still owed another $700,000 due this April.

No explanation was given for exactly what Zikha was being compensated. There has already been more than a suggestion that Zikha was hired by Pequot specifically because of the information he could offer about Microsoft and it appears that Zikha was unceremoniously dumped by Pequot once his sources at his former employer had been tapped out.

Apparently both Zikha and the folks at Pequot have been working hard to keep the trial proceedings locked down, but the Senate Judiciary Committee, which as been monitoring the case was able to obtain he Zikha financial docs from the court. Interesenté... Lots more here, at FinAlternatives.

--MDT

Labels: Arthur Samberg, David Zikha, insider trading, Pequot Capital

You may recall that one Gary Aguirre was the lead attorney in the investigation of suspicious trades at hedge fund Pequot Capital. In conjunction with his investigation, Aguirre was to interview John Mack, (then prospective and now current) chief executive of Morgan Stanley and a known friend of Arthur Samberg, founder of Pequot.

Under pressure from both Pequot and Morgan Stanley lawyers, SEC higher-ups declared hands-off on Mack. Aguirre pushed the point and was fired. His subsequent whistleblowing resulting in congressional hearings, which have in turn produced a report highly critical of the SEC's conduct in the matter.

The report from the Senate Finance and Judiciary committee supports the contentions of former SEC lawyer, Aguirre that the SEC doesn't treat all potential witnesses the same. Moreover the SEC showed "undue deference" to a Wall Street big-shot and botched what had been a promising investigation.

Get further details on the Pequot report from the New York Times. Also, check out the tags below for mucho background on the Prequot story.

-- MDT

Labels: Arthur Samberg, Gary Aguirre, John Mack, Pequot Capital, SEC

And they ain't happy. Back in July the Senate began looking into the SEC's insider trading investigation of hedge fund, Pequot Capital after complaints from former SEC investigator, Gary Aguirre,

Aguirre alleged that he was discouraged by agency higher ups from pursing information from John Mack, Morgan Stanley grand poo-bah and good buddy to Pequot founder, Arthur Samburg. Aguirre was eventually fired by the SEC and turned whistleblower, telling his tale loud and long for anyone who would listen.

The Senate listened and after extensive hearings, they've filed a report highly critical of the SEC. The NYT has a summary.

Try clicking on the tags below for further background...

-- MDT

Labels: Arthur Samberg, Gary Aguirre, homeland security, insider trading, investigation, John Mack, Pequot Capital

You don't mess with the GAO. I love those guys.

As The Daily Caveat discussed earlier this week, whether or not the SEC gave preferential treatment to Pequot's Samberg and Morgan Stanley's Mack is quite the touchy subject. Fired SEC eforcement officer, Gary Aguirre certainly thought so and so does Senator Charles Grassley, whose requests prompted the GAO investigation. More details here.

-- MDT

Labels: Arthur Samberg, GAO, Gary Aguirre, Morgan Stanley, Pequot Capital

Morgan Stanley Chief Executive Officer, John Mack remains at the center of insider trading allegations that continue to dog hedge fund, Pequot Capital Management. Former SEC Investigator Gary Aguirre has alleged that Mack was amongst the high-level personnel SEC officials dissuaded Aguirre from interviewing prior to his departure from the commission. Mack has been fingered by Aguirre as one who tipped off Pequot regarding General Electric's acquisition of Heller Capital. Prior to joining Morgan Stanley, Mack worked for Pequot briefly and is friends with Pequot founder, Arthur Samberg.

More here on Mack's date with the SEC and for more on Aguirre, try Wall Street Folly.

-- MDT

Labels: Arthur Samberg, Gary Aguirre, insider trading, John Mack, Morgan Stanley, Pequot Capital