June 23, 2006

Hedge Fund Controversy with Pequot

Pequot Capital Management is facing charges of wrongdoing in hedge fund trading. The US regulators are investigating Pequot's role in possible insider trading. Pequot is a $7 billion hedge fund. Pequot strongly denied of any wrongdoings and dismissed the reports published in a newspaper. It said that the story was based on false allegations of a terminated SEC employee. Earlier, the New York Times reported that Pequot earned $18 million after investing in companies involved in the merger. The letter, which was published in the New York Times, was in fact sent to two US senators.

According to Reuter -

The Securities and Exchange Commission has filed no charges against Pequot. In keeping with its practice of not discussing any possible probes, the SEC neither confirmed nor denied an investigation into the hedge fund, one of America's oldest and best known.

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June 23, 2006 in Regulation | Permalink




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