Ads
July 25, 2006
Morgan Stanley Executive Under SEC Scanner
Now it’s the turn of the chief executive of securities firm Morgan Stanley to come under the scrutiny of the US Securities and Exchange Commission (SEC). John Mack’s alleged involvement in the insider trading scandal concerning hedge fund Pequot Capital Management is being probed by the regulatory body.
Mack, who was earlier the CEO and then the chairman of Credit Suisse First Boston, was identified by Gary Aguirre, former attorney of the SEC who was in charge of the investigation against Pequot as the tipster in the scandal. Aguirre alleged that Mack had access to inside information by virtue of his position at Credit Suisse, which was hired as advisor on a potential merger.
He also claimed he was removed from the investigation and fired because he tried to subpoena Mack, a major fundraiser for President Bush. The SEC is now looking to interview Mack, a process that should have been carried out a year ago, according to the Government Accountability Project, the organization representing Aguirre in his federal lawsuit seeking SEC records related to the probe.
It’s just an interview, not a subpoena, say sources, and there’s no word on when it will happen.
--
Did you enjoy this post?
Comments
Post a comment
« Will Regulations Rein Hedge Funds? | Main | Battle of the Funds »
Syndicate
Comments