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6/02/2009
SEC Returns to Pequot Capital Investigation
12/11/2008
Pequot Insider Trading Case Gets Another Look
SEC Claims No Foul Play in Pequot Action
SEC Inspector General Steps Down in Wake of Botched Pequot Investigation
Congress Says SEC Erred in Pequot Investigation
Senate Sides With Aguirre, Against SEC in Review of Pequot Investigation
Senate Hearing Raises Questions about SEC Preferential Treatment of Morgan Stanley's John Mack
SarBox Opponents Readying Assault, SEC Chairman, Cox Gets Flack from Republican Brethern
GAO Probing SEC on Conduct During Pequot Capital Investigation
Pequot Capital / Morgan Stanley Influence Scandal Continues at SEC
Senators Register Support for SEC Whistleblower in Pequot / Morgan Stanley Flap
Morgan Stanley Chief Exec Questioned in Pequot Capital Probe
Former SEC Attorney Turns Whistleblower on Hedge Fund Regulation, States Feds Mull New Regs
Busy Week for Hedge Fundies
SEC Returns to Pequot Capital Investigation
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Pequot Insider Trading Case Gets Another Look
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
11/12/2008
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
SEC Claims No Foul Play in Pequot Action
The SEC has given itself a clean bill of health in the handling of the Pequot Capital hedge fund investigation. The SEC's inspector general and Senate investigators reached the opposite conclusion in their independent probe of the matter.
SEC inspector general pointedly recommended disciplinary action against SEC enforcement chief Linda Thomsen as well as Mark Kreitman assistant enforcement director and Robert Hanson the supervisor of whistleblowing SEC lawyer, Gary Aguirre.
Given the contradictory conclusion, inspector Kotz and the SenatorCharles Grassley who had orignially requested the Senate investigation of the matter both balked at the outcome of the SEC's administrative proceeding.
So what was Gary Aguirre blowing the whistle on in the first place? In a nutshell:
Aguirre was the lead attorney in an investigation of suspicious trades at hedge fund Pequot Capital. In pursuit of the investigation Aguirre sought to interview John Mack, chief executive of Morgan Stanley and longtime friend of Arthur Samberg, founder of Pequot.
According to Aguirre, his SEC higher-ups declared hands-off on Mack. When Aguirre pushed the point, he claims he was fired. His subsequent whistleblowing resulting in congressional hearings, which have in turn produced several reports highly critical of the SEC's conduct in the matter.
For a full recap of our Pequot coverage click here.
-- MDT
8/09/2007
SEC inspector general pointedly recommended disciplinary action against SEC enforcement chief Linda Thomsen as well as Mark Kreitman assistant enforcement director and Robert Hanson the supervisor of whistleblowing SEC lawyer, Gary Aguirre.
Given the contradictory conclusion, inspector Kotz and the Senator
So what was Gary Aguirre blowing the whistle on in the first place? In a nutshell:
According to Aguirre, his SEC higher-ups declared hands-off on Mack. When Aguirre pushed the point, he claims he was fired. His subsequent whistleblowing resulting in congressional hearings, which have in turn produced several reports highly critical of the SEC's conduct in the matter.
For a full recap of our Pequot coverage click here.
-- MDT
Labels: Gary Aguirre, John Mack, Pequot Capital
SEC Inspector General Steps Down in Wake of Botched Pequot Investigation
Walter J. Stachnik has been inspector general of the SEC since 1989 when the position was first created. Without much warning Stachnik retired late last week.
This timing was interesting given that it coincided with the release of a senate report that was extremely critical of his role in the SEC's mismanaged investigation of suspicious trades at hedge fund Pequot Capital.
Phrases like "not well respected" and "a tool of management, used for retaliatory investigations against disfavored staff" have been referenced in media reports. And senator Arlen Spector said of Stachnik that he could not recall “an I.G. who said less, did less and was thoroughly inadequate in the investigation.”
While the SEC has stated that Stachnik's retirement was planned all along many are reading between the lines given that 1) the SEC hasn't actually announced his retirement ands 2) no replacement is forthcoming.
Get further details on Stachnik via Forbes and to get a look at the full senate report on the Pequot investigation click on the Pequot tag below. The Daily Caveat has you covered.
-- MDT
8/06/2007
This timing was interesting given that it coincided with the release of a senate report that was extremely critical of his role in the SEC's mismanaged investigation of suspicious trades at hedge fund Pequot Capital.
Phrases like "not well respected" and "a tool of management, used for retaliatory investigations against disfavored staff" have been referenced in media reports. And senator Arlen Spector said of Stachnik that he could not recall “an I.G. who said less, did less and was thoroughly inadequate in the investigation.”
While the SEC has stated that Stachnik's retirement was planned all along many are reading between the lines given that 1) the SEC hasn't actually announced his retirement ands 2) no replacement is forthcoming.
Get further details on Stachnik via Forbes and to get a look at the full senate report on the Pequot investigation click on the Pequot tag below. The Daily Caveat has you covered.
-- MDT
Labels: insider trading, Pequot Capital, SEC, Walter Stachnik
Congress Says SEC Erred in Pequot Investigation
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
2/06/2007
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
Senate Sides With Aguirre, Against SEC in Review of Pequot Investigation
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
12/06/2006
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
Senate Hearing Raises Questions about SEC Preferential Treatment of Morgan Stanley's John Mack
Gary Aguirre finally gets some on-the-record back-up from former colleagues (scorn from others) and SEC official, Robert Hanson faces some tough questions...Details at Bloomberg.
Need a little background? Need a lot?
-- MDT
10/31/2006
Need a little background? Need a lot?
-- MDT
Labels: Gary Aguirre, John Mack, Morgan Stanley, Pequot Capital
SarBox Opponents Readying Assault, SEC Chairman, Cox Gets Flack from Republican Brethern
And they've got friends at the top. Apparently the President is planning to "fine tune" (read: roll back) SarBox.
Meanwhile SEC Chair Chris Cox seems to feel SarBox has gone a long way towards creating an environment where corporations are coming clean voluntarily, noting that (Kobi Alexander notwithstanding) the SEC has seen unprecedented levels of cooperation in the recent stock option backdating scandal. Republican appointee, Cox, has even incurred the wrath of NRO which as you might image takes a hyperbolic dim view of Sarbanes Oxley.
If you care to voice your opinion, the SEC will be taking comments in December. But given that the nation's top securities regulator is itself under investigation for playing favorites when it comes to enforcement, look for them to remain aggressive well into the new year.
-- MDT
10/27/2006
Meanwhile SEC Chair Chris Cox seems to feel SarBox has gone a long way towards creating an environment where corporations are coming clean voluntarily, noting that (Kobi Alexander notwithstanding) the SEC has seen unprecedented levels of cooperation in the recent stock option backdating scandal. Republican appointee, Cox, has even incurred the wrath of NRO which as you might image takes a hyperbolic dim view of Sarbanes Oxley.
If you care to voice your opinion, the SEC will be taking comments in December. But given that the nation's top securities regulator is itself under investigation for playing favorites when it comes to enforcement, look for them to remain aggressive well into the new year.
-- MDT
Labels: Morgan Stanley, Pequot Capital
GAO Probing SEC on Conduct During Pequot Capital Investigation
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
10/22/2006
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
Pequot Capital / Morgan Stanley Influence Scandal Continues at SEC
It as been a while since we had an update on the insider trading allegations that continue to surround Morgan Stanley CEO, John Mack and hedge fund, Pequot Capital (details here). The SEC itself has been taking some heat relating to the case, due to the comments of former SEC enforcement officer, Gary Aguirre, who has asserted that he was disuaded (and ultimately fired by his bosses) when it came time to interview Mack.
Aguirre had named Mack as the key individual in tipping off Pequot founder and Mack personal friend Arthur Samburg regarding General Electric's acquisition of Heller Capital, the transaction to which the insider trading charges pertain. The heat on the SEC doesn't appear to have dissipated one iota, with the release of new documents detailing the process of the agency's investigation as well as their handling of Aguirre's departure. Very interesting reading.
Amongst the most disturbing revelations - Samburg uses emoticons in business correspondence. Six smiley faces? Egads.
-- MDT
8/16/2006
Aguirre had named Mack as the key individual in tipping off Pequot founder and Mack personal friend Arthur Samburg regarding General Electric's acquisition of Heller Capital, the transaction to which the insider trading charges pertain. The heat on the SEC doesn't appear to have dissipated one iota, with the release of new documents detailing the process of the agency's investigation as well as their handling of Aguirre's departure. Very interesting reading.
Amongst the most disturbing revelations - Samburg uses emoticons in business correspondence. Six smiley faces? Egads.
-- MDT
Labels: Gary Aguirre, insider trading, John Mack, Morgan Stanley, Pequot Capital
Senators Register Support for SEC Whistleblower in Pequot / Morgan Stanley Flap
Senators weigh in on behalf of SEC whistleblower, Gary Aguirre. Aguirre created quite a stir when he alleged that, as an SEC staff attorney, he was encouraged not to pursue an insider trading investigation involving Morgan Stanley CEO John Mack and his connections to hedge fund powerhouse, Pequot Captial. Aguirre was subsequently fired, which lead to the aforementioned whistleblowing.
Now two senators, Arlen Spector (who is increasingly finding his feisty) and Charles Grassley have sent a letter to the SEC on Aguirre's behalf, asking the commission to provide a full accounting of what went down. More on their request, here, via Marketwatch.
-- MDT
7/24/2006
Now two senators, Arlen Spector (who is increasingly finding his feisty) and Charles Grassley have sent a letter to the SEC on Aguirre's behalf, asking the commission to provide a full accounting of what went down. More on their request, here, via Marketwatch.
-- MDT
Labels: Gary Aguirre, insider trading, John Mack, Morgan Stanley, Pequot Capital
Morgan Stanley Chief Exec Questioned in Pequot Capital Probe
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
6/28/2006
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
Former SEC Attorney Turns Whistleblower on Hedge Fund Regulation, States Feds Mull New Regs
Well now this is likely to heat up...
Gary Aguirre, the former SEC attorney who headed the investigation into Pequot Capital Management Inc (which is currently facing insider trading charges) has claimed in Congressional testimony that he was told by higher-ups at the SEC to lay off Pequot because the fund's "very powerful political connections" would have made pursuing the case difficult. Aguirre was subsequently fired from the SEC and to say relations between he and his former employer have been...tense...would not be an understatement. Meanwhile, SEC hedge fund regulation seems to be vaporizing in the face of a successful court challenge and both federal and state legislators are rattling their sabers and taking matters into their own hands.
Is a turf war brewing? And what of Pequot?
-- MDT
6/26/2006
Gary Aguirre, the former SEC attorney who headed the investigation into Pequot Capital Management Inc (which is currently facing insider trading charges) has claimed in Congressional testimony that he was told by higher-ups at the SEC to lay off Pequot because the fund's "very powerful political connections" would have made pursuing the case difficult. Aguirre was subsequently fired from the SEC and to say relations between he and his former employer have been...tense...would not be an understatement. Meanwhile, SEC hedge fund regulation seems to be vaporizing in the face of a successful court challenge and both federal and state legislators are rattling their sabers and taking matters into their own hands.
Is a turf war brewing? And what of Pequot?
-- MDT
Labels: Gary Aguirre, insider trading, Pequot Capital
Busy Week for Hedge Fundies
It has been a win some, lose some week for hedge funds. Just as alternative investment managers were celebrating a court victory dismantling the SEC's meager regulatory regime, key congressional leaders have announced plans to turn their attention to the conduct of hedge funds. And that Pequot Capital investigation just makes things all the more interesting...
-- MDT
-- MDT
Labels: Pequot Capital
