Re: 10/5/06 - MarketWatch: Pequot: No SEC action over insider-trading
Pequot: No SEC action over insider-trading
Robert Schroeder, MarketWatch
Last Update: 10:30 AM ET Oct 5, 2006
WASHINGTON (MarketWatch) -- The Securities and Exchange Commission won't recommend enforcement action against Pequot Capital Management in connection with an insider-trading investigation, the big hedge fund said Thursday.
In a letter to clients, Pequot chairman Art Samberg said the SEC's investigation into possible insider-trading by the firm isn't closed. But he said the fund is "gratified" by the SEC staff's decision.
Pequot was first reported to be under investigation in June, in a New York Times article. Pequot has denied receiving tips that resulted in insider trading.
Gary Aguirre, a former SEC attorney, told a congressional panel in May that he suspected John Mack, now the chief executive of Morgan Stanley was a possible source of tips to Pequot.
The SEC interviewed Mack about the probe in August. Aguirre claims he was fired from the agency when his investigation got too close to Mack, a major fundraiser for President Bush. But the SEC denied giving Mack special treatment.
The SEC had no comment Thursday about the Pequot case. The agency doesn't typically comment about investigations.
In his two-paragraph letter, Samberg thanks clients and friends for "continued confidence and support."
"I am very pleased to tell you that we have been informed by the staff of the Securities and Exchange Commission that it is not going to recommend any enforcement action be taken against Pequot or any of our employees," Samberg wrote in the letter.
"We should note that the SEC has not closed this matter as of yet, but we are nonetheless gratified by the staff's determination," Samberg wrote.
He said the Westport, Conn.-based firm looks forward to producing "strong results for our investors in the years ahead."
Robert Schroeder is a reporter for MarketWatch in Washington.
marketwatch.com |
