Standards & Guidance
SEC refutes Pequot allegations
Senior officials of the US
Securities and Exchange Commission (SEC) have defended the regulator’s
investigation of Pequot Capital Management
and denied allegations that Gary Aguirre, a former employee of the agency, was
hindered in his attempts to interview John Mack, chief executive of Morgan
Stanley.
Speaking before the
Senate judiciary committee last
month, Mark Kreitman, assistant director of the SEC division of enforcement,
said Aguirre had been unable to accept supervision and treated colleagues with
“disrespect bordering on contempt”. Kreitman characterised Aguirre’s
investigation of allegations that Mack passed on insider information to Pequot
as, “poorly thought out, disorganised, and sloppily documented”.
Kreitman denied the SEC had attempted to prevent Mack
being interviewed, but said that Aguirre had wanted to subpoena Mack before
developing evidence as to whether the Morgan Stanley chief executive had had
access to non-public information. When his superiors pointed out that such a
course would be fruitless, Aguirre took it as evidence of a “widespread
conspiracy to thwart him,” said Kreitman.
Links
Securities and Exchange Commission
Pequot Capital Management
Senate Judiciary Committee
January, 2007 |
