No Discipline For SEC Officials In Pequot Probe

Nov 10 2008 | 1:23am ET

Three high-ranking Securities and Exchange Commission officials will not be disciplined for lapses in the agency’s investigation of insider trading at Pequot Capital Management.

The SEC’s chief administrative law judge, Brenda Murray, declined to order punishment for Linda Thomsen, director of enforcement, and two others in the case of Gary Aguirre, a former SEC lawyer who claimed he was fired for seeking to question John Mack, the one-time Pequot chairman who now leads Morgan Stanley. In a report issued last month, H. David Kotz, the SEC’s inspector general, blasted the SEC’s probe of Pequot, saying he found evidence that “raised serious questions about the impartiality and fairness” of the investigation, and that the agency had allowed “inappropriate reasons to factor into its decision to terminate” Aguirre in 2005.

He had called for disciplinary action against Thomsen, Mark Kreitman, the SEC’s assistant director of enforcement, and Robert Hanson, Aguirre’s former supervisor. But Murray dismissed his recommendations.

“We are surprised and disappointed by the administrative judge’s decisions,” Kotz said in a statement. “We believe her findings were flawed and not supported by the evidence. We also have serious concerns about the process utilized in arriving at these decisions. We stand by our comprehensive and through reports 100%.”

Aguirre said he was fired when he asked to take testimony from Mack. He also claimed that his superiors sought to impede his investigation when it got close to Mack.

RELATED STORIES

Internal Report Blasts SEC’s Handing Of Hedge Fund Probe


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?