Pequot Insider Trading Investigation, Part 9

by Bruce Carton
Just when you thought that the eight prior investigations related to possible insider trading at Pequot Capital Management in 2001 had pretty much covered all that could be covered, there’s more: Portfolio.com reports that federal prosecutors have now opened a criminal investigation related to possible insider trading in Microsoft stock by Pequot Capital Management, the hedge fund run by Arthur Samberg.

For those of you who have been following along, the investigation scorecard now looks like this:

  1. the original investigation by the SEC’s Division of Enforcement;
  2. an investigation by the SEC’s Inspector General of the investigation by the SEC’s Division of Enforcement;
  3. an investigation and 108-page report by the Senate Finance and Judiciary Committees of the investigation by the SEC’s Inspector General of the investigation by the SEC’s Division of Enforcement;
  4. a complete re-investigation and 191-page report by the SEC’s Inspector General of the investigation by the SEC’s Division of Enforcement;
  5. a brief “re-re-investigation” and 15-page report by an SEC Initiating Official of the SEC’s Inspector General’s disciplinary recommendations flowing from his re-investigation of the investigation by the SEC’s Division of Enforcement;
  6. a new investigation commenced in December 2008 by the Senate Finance and Judiciary Committees of reported new evidence emerging in the Pequot insider trading matter;
  7. an FBI investigation commenced in December 2008 based on the reported new evidence;
  8. an all-new SEC investigation into whether there was insider trading based on the reported new evidence; and now…
  9. a criminal investigation by the prosecutors in the SDNY.

Read the Portfolio.com article